Mortgage rates can move daily, sometimes multiple times a day. A rate lock protects you from those swings while your loan is being processed. Here’s what you need to know before you lock.
What Is a Rate Lock?
A rate lock is an agreement between you and your lender that guarantees a specific interest rate for a set period, usually 30 to 60 days. Once locked, your rate won’t change even if the market moves, as long as you close within that window.
When Should You Lock?
Most buyers lock once they’re under contract on a home, since that’s when you have a closing date to work backward from. Locking too early, before you have an accepted offer, can mean paying for an extension if the deal takes longer than expected.
What Happens If Rates Drop After You Lock?
Some loan programs offer a one-time float-down option, allowing you to take advantage of a lower rate if the market moves in your favor before closing. This isn’t automatic, so it’s worth asking about upfront.
Jesse Griffith walks every client through their lock options based on where they are in the homebuying process. Call or text 321-501-9579 to find out what makes sense for your timeline.