What Is Rate Lock?

A rate lock is your lender’s written guarantee to hold a specific interest rate and discount points for a set number of days while your loan is processed. Lock periods typically range from 30 to 60 days, though 15-day and 90-day locks are also available. A rate lock protects you from market increases between application and closing.

For example, if you lock at 6.5% for 45 days on a $350,000 loan and rates rise to 6.875% during that period, you keep the lower rate—saving you about $90 per month or roughly $32,400 over 30 years. Longer lock periods may carry a slightly higher rate or additional cost, typically 0.125%–0.25% for extending from 30 to 60 days. If your lock expires before closing, you may need to pay for an extension or accept the current market rate.

Key Facts

• Common lock periods: 30, 45, and 60 days from the lock date
• Cost: Often included at no extra charge for 30–45 days; longer periods may cost 0.125%–0.25% more
• Float-down option: Some lenders offer a one-time option to lower your locked rate if market rates drop
• Expiration risk: If your lock expires before closing, you may face a higher rate or extension fee
• Lock confirmation: Get your rate lock terms in writing, including the rate, points, and expiration date

Frequently Asked Questions

When should I lock my rate?

Most borrowers lock after receiving pre-approval or once they have an accepted offer. Locking too early risks expiration if your closing is delayed. Your loan officer can help you choose the right lock period based on your expected closing timeline.

What happens if my rate lock expires?

If your closing takes longer than your lock period, you may need to pay an extension fee—typically 0.125%–0.375% depending on the length—or accept the current market rate. Communicate any potential delays to your lender as early as possible.

Can I unlock my rate if rates drop?

Most rate locks are binding and cannot be broken without restarting the process. However, some lenders offer a float-down provision that allows you to lower your locked rate one time if rates drop by a specified amount, usually at least 0.25%.