Key takeaways
- Common lock periods range from a couple of weeks to two months, and longer locks are usually priced higher because the lender carries market risk longer. Lock periods
- If closing is delayed, a lock extension may carry a fee. Extensions and float-downs
- No one can reliably predict short-term market moves. When to lock
What a lock does
A rate lock is a lender’s commitment to hold a specific interest rate and price for a set number of days while your loan is processed, as long as your application details do not change.
Lock periods
Common lock periods range from a couple of weeks to two months, and longer locks are usually priced higher because the lender carries market risk longer. New construction loans may offer extended locks.
What can change a locked rate
- A lower appraisal that changes your loan-to-value.
- A change in credit score, income or loan amount.
- Missing the lock expiration date.
Extensions and float-downs
If closing is delayed, a lock extension may carry a fee. Some lenders offer a float-down option that lets you capture a better market price once during the lock, sometimes for a fee. Get any lock agreement in writing.
When to lock
No one can reliably predict short-term market moves. Many borrowers lock once they have a signed purchase contract or a refinance application and a closing timeline they can meet.
Updated · Sources reviewed
This page is general education. Program rules change; confirm current requirements with the official sources linked here and with a licensed lender.