Mortgage Rate Lock: When and How to Lock Your Rate

Timing your mortgage rate lock can save or cost you thousands of dollars. Lock too early and you might miss a rate drop. Lock too late and rates could spike before you close.

This guide explains everything you need to know about mortgage rate locks—how they work, when to use them, how long they last, and strategies to time your lock for maximum savings.

What Is a Mortgage Rate Lock?

A rate lock is a lender's guarantee that your interest rate won't change between application and closing—as long as you close within the lock period and nothing material changes in your application.

What's locked:

Interest rate
Points (if applicable)
Lender fees
Loan program

What's NOT locked:

Third-party fees (appraisal, title, etc.)
Property taxes and insurance
[HOA fees](/blog/investing-in-condos-guide)

Think of it as a reservation: the lender holds that rate for you regardless of market movements.

How Long Do Rate Locks Last?

Standard lock periods:

30 days - Short closings, most common for refinances
45 days - Standard for purchases
60 days - Extra buffer for complex transactions
90 days - New construction or slow closings

Longer locks typically cost more.

How Much Do Rate Locks Cost?

Standard Locks (30-60 days)

Usually free - No charge for standard lock periods
Built into the rate you're quoted
Most lenders include 30-45 days at no cost

Extended Locks (90+ days)

0.125%-0.25% of loan amount per 30 days beyond standard
Example: 90-day lock on $400,000 = $500-$1,000 fee
Or slightly higher interest rate (0.125%-0.25%)

Rate Lock Extensions

If you don't close in time:

7-15 day extension: Usually free (once)
30 day extension: 0.125%-0.25% fee or rate increase
Some lenders: $500-$1,500 flat fee per extension

Pro tip: Build in buffer time. A 45-day lock for a 35-day closing gives you cushion.

When Should You Lock Your Rate?

Lock Immediately If:

1. Rates are rising

Fed is raising rates
Economic indicators point to higher rates
You got a great rate—protect it

2. You're happy with the rate

It fits your budget comfortably
Meets your financial goals
Peace of mind > gambling on a drop

3. You're closing soon (under 30 days)

Less time for rates to move significantly
Reduced risk
Standard lock covers you to closing

4. You can't afford payment increases

Tight budget
Maxed DTI
Rate jump could disqualify you

5. You're risk-averse

Sleep well knowing your rate is set
Don't want to gamble

Consider Floating If:

1. Rates are falling

Fed is cutting rates
Economic slowdown
Market trending down

2. You're early in the process

60+ days to closing
Long lock is expensive
Can wait and watch

3. You're willing to take risk

Budget has room for increase
Gambling on better rate
Can absorb potential higher rate

4. You have a float-down option

Lender offers rate lock with float-down
Best of both worlds (with conditions)

Float vs. Lock: Decision Framework

Factors to Consider:

Rate environment:

Stable or rising → Lock
Falling → Consider floating

Time to closing:

Under 30 days → Lock
45-60 days → Lock or use float-down
90+ days → Float, lock closer to closing

Risk tolerance:

Low risk tolerance → Lock
High risk tolerance → Float

Budget flexibility:

Tight budget → Lock
Room for higher payment → Float

Market volatility:

Choppy markets → Lock
Calm, trending markets → Float might work

How to Time Your Rate Lock

Strategy 1: The Safe Play

Lock as soon as you have clear to close timeline
Typical: Lock at contract acceptance (purchases) or appraisal ordered (refis)
Gives certainty
No gambling

Strategy 2: The Opportunist

Monitor rates daily
Set a target rate
Lock when you hit your target
Requires active management

Strategy 3: The Technical Approach

Watch 10-year Treasury yield (mortgage rates follow it)
Lock when yields spike (rates tend to follow)
Float when yields drop
Requires market knowledge

Strategy 4: The Float-Down Hybrid

Lock early with float-down option
Protected if rates rise
Can capture rate drops (with limitations)
Small fee but good insurance

What Happens If Rates Change After You Lock?

Rates Go Up

You're protected - Your locked rate doesn't change
You saved money by locking
Sleep well

Rates Go Down

You're stuck - Unless you have float-down option
You pay the higher locked rate
Might sting, but you had certainty

Can You Break a Lock?

Yes, but:

Start over with new application
New fees (appraisal, etc.)
New timeline
Risk rates going back up
Usually only worth it if rates dropped significantly (0.5%+)

Float-Down Rate Lock Options

Some lenders offer rate locks with a float-down or renegotiation option.

How It Works:

Lock your rate today
If rates drop by a certain amount (typically 0.25%-0.50%), you can lock the lower rate
Usually one-time option
Fee: $500-$1,500 or slight rate increase (0.125%)

Conditions:

Rate must drop by minimum threshold (e.g., 0.25%)
Must be exercised X days before closing (e.g., 5 days)
One renegotiation only
Can't cherry-pick the exact lowest rate

Is it worth it?

If rates are volatile: Yes
If you're locking 60+ days out: Probably yes
If fee is low ($500): Good insurance
If fee is high or significantly increases rate: Maybe not

Rate Lock Extensions: What to Know

Why You Might Need Extension:

Delays in appraisal
Title issues
Buyer/seller delays
Underwriting hold-ups
Construction delays (new builds)

How Extensions Work:

Request before lock expires
Lender grants additional days (7, 15, 30)
Fee or rate increase applied
One-time or multiple (varies by lender)

Extension Costs:

First extension (7-15 days): Often free
30-day extension: $500-$1,500 or 0.125%-0.25% rate bump
Multiple extensions: Increasingly expensive

How to Avoid Extensions:

Lock for 45-60 days even if you think you'll close in 30
Buffer time is cheap insurance
Coordinate with all parties to avoid delays
Longer lock upfront < extension fees later

Rate Lock Mistakes to Avoid

Mistake 1: Locking Too Early

Lock 90 days out on a 45-day closing
Pay for extended lock unnecessarily
Solution: Lock 45-60 days max unless new construction

Mistake 2: Floating Too Long

Gamble on rates dropping
Rates spike instead
Payment goes up or you no longer qualify
Solution: Lock when you're comfortable, don't get greedy

Mistake 3: Not Reading Lock Terms

Assume lock is guaranteed
Miss conditions (e.g., no material changes)
Surprised when lock breaks
Solution: Read the rate lock agreement carefully

Mistake 4: Ignoring Lock Expiration

Lose track of lock expiration date
Rate expires, new rate is higher
Solution: Mark calendar, set reminders

Mistake 5: Changing Loan Details After Lock

Switch from conventional to FHA
Change loan amount significantly
Result: Lock is void
Solution: Finalize loan details before locking

Mistake 6: Not Shopping Lenders Before Lock

Lock with first lender
Find better rate elsewhere the next day
Stuck with higher rate
Solution: Shop 3-5 lenders BEFORE locking

Mistake 7: Assuming Float-Down Is Free

Don't read fine print
Surprised by fee or conditions
Solution: Ask about all costs and limitations upfront

What Voids a Rate Lock?

Your lock can be invalidated if:

1. Material changes to application

Credit score drops significantly
Job change or income loss
Debt increases
Property value comes in low

2. Closing date pushes past lock expiration

Must extend (fee) or re-lock at current rates

3. Change in loan program

Switch from conventional to FHA
Change from 30-year to 15-year
Requires new lock

4. Property change

Buy different property
Change from primary to investment
Material property condition issues

Takeaway: Lock your rate AFTER you're certain about all loan details.

How to Get the Best Rate Lock

1. Shop Multiple Lenders Before Locking

Get quotes from 3-5 lenders
Compare rates, fees, lock terms
All within 14 days to minimize credit impact
Lock with the best overall deal

2. Improve Credit Before Locking

Pay down credit cards
Fix errors on credit report
Every 20-point bump can mean 0.125%-0.25% better rate
Lock after credit optimization

3. Increase Down Payment

More equity = better rate
20% down avoids PMI and gets best rates
25%+ down = even better pricing

4. Lock on the Right Day

Avoid Fridays - Lenders often raise rates before weekends
Early in week - Rates often better Monday-Wednesday
Morning - Rates can change midday

5. Watch Economic Reports

Jobs report, CPI, Fed meetings
Rates spike on strong economic data
Lock before major reports if uncertain

6. Consider Buying Points

Pay fee to lower rate permanently
Makes sense if keeping loan 5+ years
Lock the lower rate you've purchased

7. Ask About Unpublished Rates

Lenders sometimes have better pricing available
"What's your best rate for my scenario?"
Doesn't hurt to ask

Rate Lock Communication Tips

Questions to Ask Your Lender:

"What's your rate lock policy?"
"How long is the lock period?"
"What does it cost to extend?"
"Do you offer float-down options?"
"What could void my lock?"
"When do you recommend I lock?"
"Can I lock now and improve the rate later if they drop?"

Get It in Writing:

Rate lock confirmation document
Expiration date clearly stated
All fees and conditions
Don't rely on verbal agreements

Confirm Before Expiration:

Check in 7-10 days before lock expires
Verify you're on track to close
Request extension early if needed (usually cheaper)

Special Rate Lock Scenarios

New Construction

Challenge: Long timeline (6-12 months)
Solution: Don't lock until 60 days from completion
Or: Lock at clear to close with builder-lender (if competitive)
Risk: Rates could rise during construction

Refinance

Advantage: Faster timeline (no purchase contract delays)
Standard: 30-45 day lock is plenty
Tip: You control timing, lock when rates dip

Jumbo Loans

More expensive to extend: Fees are higher (% of larger loan)
Lock wisely: Don't cut it close on timing
Shop carefully: Jumbo rate locks vary significantly between lenders

Investment Properties

Higher rates: 0.5%-1% higher than primary residence
Same lock rules apply
Consider: Float less often—less margin for error

Rate Lock in Different Market Conditions

Rising Rate Environment (2022-2023)

Lock fast - Don't wait
Extend if needed - Better than re-locking higher
Short locks - Close quickly

Falling Rate Environment (2024-2025)

Float longer - Rates may improve
Use float-down - Capture drops while protected
Lock strategically - Wait for good dip

Volatile Markets (2026)

Float-down is your friend
Lock when comfortable - Volatility can swing both ways
Don't get cute - Certainty has value

Bottom Line: Rate Lock Strategy

The safe approach:

Shop lenders aggressively
Lock when you find a rate you're happy with
Build in buffer time (45-60 days)
Sleep well knowing your rate is set

The opportunistic approach:

Monitor rates daily
Set a target rate
Lock when you hit it
Accept the risk of missing the absolute bottom

The best-of-both-worlds approach:

Lock with float-down option
Pay small fee for flexibility
Protected on upside, can capture some downside
Ideal for 60+ day closings

No matter your strategy:

Shop before you lock
Understand your lock terms
Build in buffer time
Mark lock expiration on your calendar
Communicate with your lender

Mortgage rates fluctuate daily—sometimes multiple times per day. The difference between a great lock and a poor one can be thousands of dollars over the life of your loan.

Don't leave it to chance. Understand how rate locks work, monitor the market, and lock strategically. The few hours you invest in timing your rate lock well could be the highest-ROI time you spend in the entire homebuying process.

Mortgage Rate Lock Guide

Key Takeaways