A rate "lock" or "commitment" is a lender's promise to freeze a particular interest rate and a specific number of points for you for a certain period of time while your application is processed. This means your interest rate won't rise as you are working through the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer spans usually costing more. A lending institution may agree to hold an interest rate and points for a longer period, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.
In addition to opting for a shorter rate lock period, there are other ways you can attain the lowest rate. The more the down payment, the better the rate will be, since you will be starting with more equity. You can pay points to reduce your rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to reduce the interest rate over the life of the loan. You'll pay more up front, but you'll come out ahead in the end.
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