What is a "rate lock period"? How can you make sure your rate is low?

A rate lock or a rate commitment is a lender's promise to hold a certain interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from going through your whole application process and at the end of it finding out the interest rate has gone up.

A rate lock period can vary in length, and longer ones usually cost more. A lender will agree to "hold" your interest rate and points for a longer period, say 90 days, but in exchange the rate and maybe points are higher than with a shorter rate lock period, for example.

There are many ways besides opting for a shorter rate lock period to get a lower rate, though. A larger down payment will result in a lower interest rate than a smaller one, because you're starting out with more equity and thereby having less risk to the lender. You can pay points to lower your rate over the life of the loan, but that means you pay more up front. For many people, this makes sense and is a good deal.

Closing costs are fees necessary in closing a loan, which the lender and 3rd parties (such as title companies) in turn charge you to close the loan.  Financing closing costs is an option on refinances and purchases - each is a little bit different.  On a purchase, it is important to contact me before an offer is made to finance closing costs.  This way we can set things up so things go as easy as 1-2-3!

Finally, the interest rate depends primarily on your income, credit, cash assets, and loan-to-value ratios - but not limited exclusively to those.  If you have good credit and your income far exceeds your debt obligations, you will likely qualify for a lower rate.