Can I lock my rate before I find a property?

Generally, no. Most lenders require a signed purchase contract with a specific property address before they can lock your rate. However, some lenders offer 'lock and shop' programs that allow you to lock a rate while still house hunting, though these may come with restrictions or fees.

What happens if rates drop after I lock?

If you have a float-down option, you may be able to take advantage of lower rates. Otherwise, you're committed to your locked rate. However, if rates drop significantly (0.5% or more), it may be worth discussing options with your lender, as some may offer accommodations to keep your business.

Is there a fee to lock my rate?

Most lenders don't charge a separate fee for standard 30-day rate locks. However, longer lock periods (45+ days) typically come with slightly higher rates. Some lenders may charge for float-down options or lock extensions.

Can I change lenders after locking my rate?

Yes, but you'll lose your locked rate with the original lender. The new lender will offer their current rates. Consider the potential rate difference, closing costs, and timeline impact before switching lenders after locking.

How do I know when to lock vs. float?

This depends on your risk tolerance and market conditions. If you're comfortable with current rates and want certainty, lock. If you believe rates will drop and can accept the risk of them rising, you might float. Your loan officer can provide guidance based on current market trends.

What's included in my rate lock?

A rate lock typically includes your interest rate, discount points, and the lock period. Make sure you get your rate lock agreement in writing with all terms clearly stated, including the expiration date and any conditions.

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Mortgage Education

Understanding Mortgage Rate Locks

A comprehensive guide to protecting your interest rate during the loan process. Learn when to lock, how long to lock, and strategies for getting the best rate.

What is a Rate Lock?

A rate lock (also called a "lock-in" or "rate commitment") is a guarantee from your lender that your interest rate will remain the same for a specified period, regardless of market fluctuations. This protection is crucial because mortgage rates can change daily—sometimes multiple times per day—based on economic conditions.

When you lock your rate, you're essentially "freezing" that rate for a set period (typically 30-60 days) while your loan is being processed. If rates go up during this time, you're protected. However, if rates go down, you may be stuck with the higher locked rate unless you have a float-down option.

Protection

Shields you from rate increases during the loan process

Time-Limited

Valid for a specific period (15-90 days typically)

May Have Costs

Longer lock periods may come with slightly higher rates

When Should You Lock Your Rate?

Good Times to Lock

Rates are at or near historical lows
You have a firm, realistic closing date
Economic indicators suggest rates will rise
You're comfortable with the current rate
Your loan has been fully approved
You're within 30-45 days of closing
The Federal Reserve signals rate hikes
Inflation data comes in higher than expected

Consider Waiting If

Your closing date is uncertain or far away
Rates have been trending downward
You're still shopping for properties
Your loan approval is still pending
Economic indicators suggest rates may drop
The Fed signals potential rate cuts
You're more than 60 days from closing
Major economic news is expected soon

Rate Lock Periods Explained

The length of your rate lock affects both your rate and your flexibility. Shorter locks typically offer better rates but require faster closings. Here's what to expect:

Lock Period	Best For	Rate Impact	Risk Level
15 Days	Quick refinances, cash buyers	Best rates available	High (tight timeline)
30 Days	Standard purchases, most refinances	Standard pricing	Moderate
45 Days	Complex loans, some new construction	+0.125% typical	Lower
60 Days	Extended closings, complex purchases	+0.25% typical	Lower
90+ Days	New construction, special programs	Significant premium	Lowest

Pro Tip: Most purchase transactions close within 30-45 days. If you're confident in your timeline, a 30-day lock often provides the best balance of rate and flexibility.

Float-Down Options

A float-down option allows you to take advantage of lower rates if they drop after you've locked. This gives you the best of both worlds: protection from rate increases while still benefiting from potential decreases.

How Float-Down Works

If rates drop by a certain amount (usually 0.25% or more), you can request to "float down" to the lower rate.

Typically available once during the lock period
May require rates to drop by a minimum amount
Must be requested before closing
Some lenders charge a fee for this option

Cost Considerations

Float-down options may come with additional costs:

Upfront fee (0.25-0.5 points)
Slightly higher initial rate
May only get partial rate reduction
Not all lenders offer this option

Ask your loan officer about float-down availability.

What If Your Rate Lock Expires?

If your loan doesn't close before your rate lock expires, you have several options:

1. Extend Your Lock

Most lenders allow you to extend your lock for an additional fee, typically 0.125-0.25% of the loan amount per week of extension. This keeps your original rate.

2. Re-lock at Current Rates

You can let your lock expire and re-lock at current market rates. This could be beneficial if rates have dropped, but risky if they've increased.

3. Negotiate with Your Lender

If the delay wasn't your fault (lender processing issues, appraisal delays), your lender may extend your lock at no cost or split the extension fee.

Important: Always communicate proactively with your loan officer if you anticipate any delays. Early notification often leads to better solutions and may prevent lock expiration issues.

Understanding Rate Locks

Protect your rate while your loan is being processed

What is a Rate Lock?

A rate lock is a guarantee from your lender that your interest rate will not change for a specified period, typically 30 to 60 days. This protects you from market fluctuations while your loan application is being processed and underwritten.

When Should You Lock Your Rate?

✓ Good Times to Lock

• When rates are historically low
• When you have a firm closing date
• When economic news suggests rates may rise
• When you're comfortable with the current rate
• When your loan is fully approved

⚠ Consider Waiting If

• Your closing date is uncertain
• Rates are trending downward
• You're still shopping for properties
• Your loan approval is pending
• Economic indicators suggest rate drops

Rate Lock Periods

Lock Period	Best For	Typical Cost
15 days	Quick closings, refinances	Usually no extra cost
30 days	Standard purchase transactions	Standard pricing
45 days	New construction, complex loans	Slight rate increase (~0.125%)
60 days	Extended closings	Higher rate increase (~0.25%)
90+ days	New construction, special programs	Significant premium

Important Considerations

Lock Extensions: If your loan doesn't close within the lock period, you may need to pay for an extension or accept a higher rate.
Float-Down Options: Some lenders offer float-down provisions that allow you to take advantage of lower rates if they drop after you lock.
Lock Fees: While most locks are free, some lenders charge a fee that may be refundable at closing.
Rate Lock Agreements: Always get your rate lock in writing with the exact rate, points, lock period, and expiration date.

Ready to lock in your rate? Our loan officers can help you determine the best timing.

Call (800) 921-4858 to Lock Your Rate

Rate Lock FAQs

Common questions about mortgage rate locks

Ready to Lock Your Rate?

Our experienced loan officers can help you determine the best time to lock and guide you through the entire process. Get personalized advice for your situation.

Calculator Disclaimer

These calculations are estimates for educational purposes only and do not represent a loan offer or commitment. Actual rates, payments, and terms will vary based on your specific financial situation, credit profile, property details, and current market conditions.

Please contact a licensed loan officer at (800) 921-4858 for accurate, personalized quotes.

Important Disclosure

Loan approval is not guaranteed and depends on your specific financial situation and lender guidelines. Rates, terms, and program availability are subject to change without notice. This is not a commitment to lend. Equal Housing Opportunity.

NS Funding•NMLS #139369•Equal Housing Lender

NS Funding is a DBA of NorthStar Funding Inc. | Licensed in CA, CO, CT, DC, FL, GA, IL, MA, MD, NC, NH, NJ, NY, OH, OR, PA, SC, TX, VA