When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period for the application process. This prevents you from getting through your whole application process and finding out at the end that the interest rate has gotten higher.
Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer ones generally costing more. The lending institution will agree to hold an interest rate and points for a longer span of time, such as sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of a shorter period.
In addition to choosing a shorter lock period, there are other ways you can attain the lowest rate. The larger down payment you pay, the smaller the rate will be, since you will be entering the loan with more equity. You could opt to pay points to lower your rate for the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to improve the rate over the life of the loan. You are paying more initially, but you will save money in the long run.
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