Rates & interest

Rate lock

A lender's guarantee to hold a quoted interest rate for a set period — often 30 to 60 days — while your loan closes, protecting you from rate increases.

Sources

What does rate lock mean?

When you lock a rate, the lender commits to it for a window long enough to close — commonly 30, 45 or 60 days — so a market move cannot raise your rate before funding. Longer locks cost more. If rates fall after you lock, you are generally held to the locked rate unless the lender offers a float-down, and letting a lock expire can mean re-pricing at the current, possibly higher, rate.

How a lock works

Typical lock periods are 30, 45 or 60 days; longer locks usually cost more, either as a fee or a slightly higher rate.

The lock covers the rate and points for that loan — not your file. A credit change, a lower appraisal or a different loan amount can change the price.

If closing slips past the lock date, an extension usually carries a fee, so set the lock to match a realistic closing timeline.

Float-downs and timing

Some lenders offer a float-down option, which lets you take a lower rate if the market improves after you lock, usually for a fee or only if rates fall by a set amount. Locking is a trade-off between protection and possible savings: in a week when rates jump a quarter of a percentage point, a lock on a $400,000 loan can be worth around $65–$70 a month.

Frequently asked

How long can I lock my mortgage rate?

Commonly 30, 45 or 60 days — long enough to close. Longer locks are available for a higher cost. If your lock expires before closing, the lender re-prices at the current rate, which could be higher.

What happens if rates drop after I lock?

You are generally held to the locked rate. Some lenders offer a one-time float-down that lets you take a lower rate if the market falls before closing, sometimes for a fee — ask about it before you lock.