Rate Lock

A rate lock is a lender’s written guarantee that your mortgage interest rate won’t change between now and closing — it’s your shield against market swings during the 30-60 days it takes to finalize your loan. Without one, rates could jump half a point between application and closing day, costing you tens of thousands over the loan’s life.

How It Works

Once you apply and get approved, you can ask the lender to lock your rate for a set period — typically 30, 45, or 60 days. Some lenders offer locks up to 90 or even 120 days for new construction. Longer lock periods usually cost a bit more because the lender carries the risk of rate changes for longer.

Your lock should cover your expected closing date plus a buffer of at least a week. Closing delays happen constantly.

Dollar Example

You lock at 6.75% on a $350,000 loan. Two weeks later, rates jump to 7.00%. Your lock just saved you $60/month, or $21,600 over 30 years. A 30-day lock might cost nothing extra, while a 60-day lock might add 0.125% in fees (about $438). Still a bargain if rates rise.

Watch Out

If your lock expires before closing, you’re at the lender’s mercy. They might extend it for free, charge a fee (often 0.125-0.25% of the loan), or re-price you at current market rates. Don’t let your lock expire. If your closing gets delayed, contact your loan officer immediately about an extension.

Also, a rate lock works both ways. If rates drop after you lock, you’re stuck at the higher rate unless your lock includes a float-down option. Ask about this upfront.

Frequently Asked Questions

When should I lock my rate?

Lock when you’re comfortable with the rate and you have a clear closing timeline. Trying to time the market is a losing game — even mortgage professionals can’t predict rate movements reliably. If today’s rate fits your budget, lock it. Check current loan scenarios to see if today’s rates work for your numbers.