Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to set a particular interest rate and a specific number of points for you for a certain period of time while your application is processed. This ensures that your interest rate can't rise during the application process.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would have with a shorter span of time

More Ways to Get a Great Interest Rate

In addition to going with the shorter rate lock period, there are other ways you are able to score the lowest rate. A bigger down payment will result in a better interest rate, since you will be starting out with a good deal of equity. You can pay points to bring down your rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to improve the rate over the term of the loan. You'll pay more up front, but you will come out ahead, especially if you keep the loan for the full term.