When to Lock Your Rate

The best time to lock is when you have a signed purchase contract and are comfortable with the current rate. Lock as soon as your loan application is complete and your credit has been reviewed. Locking early protects you from rate increases while your loan is processed.

Some lenders allow you to lock before you have a specific property, often called a rate locker program. This is useful if you are shopping for homes and want to secure today's rate while you search.

Lock Periods and Timing

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

If you are not sure about your closing date, choose a longer lock. The extra cost is often worth the peace of mind. You can always extend if needed, but extensions add fees.

Float-Down Options

A float-down option lets you 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, so ask before you lock.

Extensions

If your lock expires before closing, you can request an extension. Extensions typically cost a fee based on the number of extra days. Contact your lender well before the expiration date to arrange an extension. Waiting until the last day limits your options.

Key Takeaways

• Lock when you are comfortable with the rate and have a signed contract.
• Choose a lock period longer than your expected closing timeline.
• Ask about float-down options for flexibility.
• Communicate with your lender if your closing timeline changes.
• Refinancing is always an option if rates drop after you close.