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Step 12: Lock Your Interest Rate

Lock your rate so it can't rise before closing, for long enough to cover your closing date.

Mortgage rates move every day. A rate lock is the lender's promise to hold your interest rate and pricing for a set period while your loan closes.

How a lock works

  • Length: 30, 45 and 60 days are common. Longer locks cost a little more.
  • What's locked: the rate and the price, meaning any discount points or lender credit.
  • What can change it: a different loan amount, credit score, property value, occupancy or program. A locked price is based on your file as submitted.

When to lock

You can usually lock once you have a ratified contract and a complete application. Timing the market rarely works. Lock when the payment fits your budget.

If rates drop after you lock

Some lenders offer a float-down, a one-time option to take a lower rate if the market improves by a set amount. Ask whether it's available and what it costs before you lock.

If closing is delayed

If the lock expires before closing, you'll need an extension, usually for a fee, or a re-lock at current pricing. Pick a lock period that covers your closing date with a few days of cushion.

On Unbeatable, Rate Watch shows how today's pricing compares to your estimate.

Next: schedule the home inspection.

Your next move, by loan program

  • Conventional: Conventional pricing depends on credit score and loan-to-value. If either changes before closing, the locked price can change too. Watch today's rates
  • FHA: FHA rates are less sensitive to credit score, but your lock still has to cover the appraisal and any repairs. Watch today's rates
  • VA: VA appraisals can take longer, so lock for 45 days or more in busy markets. Watch today's rates
  • USDA: Allow for USDA's final review when you choose the lock length. 45 to 60 days is common. Watch today's rates
  • Jumbo: Jumbo pricing varies more between lenders, so compare locked prices, not advertised rates. Watch today's rates
  • Investor: DSCR rate locks often depend on prepayment penalty terms. A shorter penalty usually means a higher rate. Watch today's rates