When to lock your interest rate

If your rate lock expires before your loan closes, you will typically lose the locked rate. You will then be subject to the current market rates at the time of closing, which could be higher. In some cases, you may be able to pay a fee to extend the lock, but this is not guaranteed.

A mortgage rate lock, also known as a rate commitment, is a guarantee from a lender that they will honor a specific interest rate and a set number of points for your mortgage loan for a predetermined period. This protects you from potential rate increases while your loan application is being processed.

Most lenders do not charge an upfront fee for a standard rate lock period (e.g., 30-60 days). However, if you need to extend the lock period because your closing is delayed, you will likely incur an extension fee. Longer lock periods (e.g., 90+ days) may also come with a higher initial cost or a slightly higher interest rate.

A rate lock is a guarantee from the lender that your interest rate will not change between the lock date and your closing, protecting you from market fluctuations. A float-down option is a paid feature that allows you to secure a lower rate if market interest rates decrease during your lock period.