What Is a Mortgage Rate Lock?

A mortgage rate lock is a lender's guarantee to hold a specific interest rate for a set period, typically 15 to 60 days, while your loan is being processed. Once locked, the rate cannot change even if market rates rise during the lock period.

When Is the Best Time to Lock My Rate?

The best time to lock is when you are comfortable with the current rate and have a signed purchase contract. Lock as soon as your loan officer confirms your application is complete and your credit has been reviewed. Waiting to float can save money if rates fall but risks higher costs if rates rise.

How Long Does a Typical Rate Lock Last?

Common lock periods are 30, 45, and 60 days. Shorter locks usually have lower costs. Longer locks provide more protection if your closing is delayed. Choose a lock period that extends at least a few days past your expected closing date.

How Much Does It Cost to Lock a Rate?

Some lenders offer free rate locks for standard periods. Others charge a fee, which may be a flat amount or built into a slightly higher rate. Longer lock periods generally cost more. The cost of not locking (if rates rise) can far exceed the lock fee.

Can I Extend My Rate Lock?

Yes, most lenders offer extensions for a fee. The cost depends on how many extra days you need and current market conditions. Contact your lender before the lock expires to arrange an extension. Some lenders offer a one-time free extension of a few days.

What Is a Float-Down Option?

A float-down option allows you to lock at today's rate but request a lower rate if market rates drop during your lock period. This option adds cost upfront but provides flexibility. Not all lenders offer float-downs.

Can I Cancel My Rate Lock?

You can cancel your application at any time, which also cancels the rate lock. Any lock fees paid may or may not be refundable depending on your lender's policy. Review the lock agreement for cancellation terms before locking.

Can I Transfer My Rate Lock to a New Property?

Some lenders allow lock transfers to a new property if the original contract falls through. Policies vary widely. Ask your lender about lock transferability before locking if there is any uncertainty about the property.

How Does My Credit Score Affect My Rate Lock?

Your credit score directly affects the rate you can lock. Higher scores qualify for lower rates. If your credit changes during the lock period (e.g., a new inquiry or late payment), it could affect your loan approval but should not change your locked rate.

How Does Employment Status Affect My Rate Lock?

Your employment is verified at the time of application and again before closing. If you change jobs during the lock period, your loan may need to be re-underwritten. A voluntary job change to a similar or higher-paying position in the same field is usually fine.

Does Property Type Affect Rate Lock Pricing?

Yes. Investment properties, second homes, and multi-unit properties typically have higher rates than primary residences. The property type is assessed when you apply, and the rate you lock reflects the property's risk category.

Does Loan Type Affect Rate Lock Options?

Yes. Conventional, FHA, VA, USDA, and jumbo loans each have different rate lock policies and pricing. FHA and VA loans may have different extension policies than conventional loans. Jumbo loans often require longer lock periods and higher lock fees.

Can I Lock Before Having a Purchase Contract?

Some lenders allow rate locks without a specific property, often called a "rate locker" or "float-down" program. This is more common for refinances. For purchases, most lenders require a signed contract before locking.

What Happens If My Lock Expires Before Closing?

If your lock expires before closing, you may be able to extend for a fee, or you will need to lock at the current market rate. If rates have risen, your monthly payment will increase. Always communicate with your lender well before the expiration date.

Can I Lock a Rate on an Investment Property?

Yes, investment property rates can be locked just like primary residence rates. Expect higher rates and potentially larger down payment requirements. The lock process is the same.

Can I Lock a Rate for a New Construction Home?

Yes, but new construction locks require special consideration because the closing date is uncertain. Many lenders offer extended lock periods specifically for new construction, sometimes up to 12 months. These longer locks cost more but protect against rate increases during the build.

Does Locking Lock My Closing Costs Too?

A rate lock typically only guarantees the interest rate and discount points. Other closing costs such as title fees, appraisal fees, and recording fees are not locked and may change. The Closing Disclosure estimates these costs but they are not guaranteed until closing.

Can I Lock My Rate After I Apply?

Yes, you can lock at any point after your application is submitted and your credit has been reviewed. Some borrowers choose to float initially and lock later if they believe rates may drop. Your loan officer can help you decide on timing.

Is a Rate Lock Transferable to Another Lender?

No, rate locks are lender-specific. If you switch lenders, you will need to lock a new rate with the new lender. That is why it is important to choose your lender carefully before locking.

When Should I Call Patrick About My Rate Lock?

Call anytime you have questions about your rate lock. Whether you are a first-time buyer in San Antonio, a growing family in the Texas Hill Country, or an investor looking at multiple properties, I can guide you through the rate lock process step by step. Every situation is different, and I am here to help you understand your options.