What Is Rate Lock?
Rate Lock: A lender's commitment to hold your interest rate and pricing for a set number of days.
A rate lock is a lender's guarantee that your interest rate and pricing won't change for a set period, as long as your application details stay the same.
Lock periods
30, 45 and 60 days are common. Longer locks cost a little more because the lender takes more market risk. Pick a period that covers your closing date with a cushion.
What can change a locked rate
- A different loan amount or down payment
- A lower appraised value that changes your loan-to-value ratio
- A credit score change
- A change in program, occupancy or property type
If the lock expires
You'll need an extension, usually for a fee, or a re-lock at current pricing, whichever the lender allows.
Good to know
Ask about a float-down if you're worried rates will fall after you lock.