What is a "rate lock period"?

Lock It In

When you are promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate for a determined period while you work on your application process. This means your interest rate won't rise during the application process.

Rate lock periods can vary in length, between 15 to 60 days, with the longer spans typically costing more. A lending institution can agree to freeze an interest rate and points for a longer period, such as 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.

Other Interest Saving Strategies

In addition to going with a shorter rate lock period, there are several ways you may be able to get the lowest rate. The bigger the down payment, the better your rate will be, because you will be starting with more equity. You can pay points to improve your interest rate for the life of the loan, meaning you pay more up front. One strategy that is a good option for some is to pay points to improve the rate over the life of the loan. You'll pay more up front, but you'll come out ahead in the long run.