A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a certain number of points for you for a specified period of time while your application is processed. This keeps you from working through your whole application process and discovering at the end that the interest rate has risen higher.
Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer period typically costing more. The lender will agree to freeze an interest rate and points for a longer period, say sixty 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 several ways you may be able to get the best rate. The larger down payment you can pay, the lower the rate will be, as you will have more equity from the start. You can pay points to reduce your rate over the loan term, meaning you pay more up front. To many people, this is a good option..
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