Yes, you can lock a rate for a refinance just like you would for a purchase. The process is similar, but since refinancing does not involve a property sale, there is no purchase contract involved. Rate locks for refinancing typically last 30 to 60 days.
Here is how rate locks work for refinancing and what to expect.
Refinance Rate Lock Process
When you refinance, you apply for a new loan to replace your existing mortgage. Once your application is complete and your credit has been reviewed, you can lock your rate. The lock guarantees your rate for the processing period, typically 30 to 60 days.
Since refinances do not have a contract contingency, the timeline is more predictable. You are not waiting on a seller or a closing date negotiated with another party. This can make the lock period easier to manage.
Lock Periods for Refinancing
Standard refinance lock periods are 30, 45, and 60 days. A 30-day lock usually has the lowest cost. If you have a straightforward refinance with no complications, 30 days is usually enough. If there are potential issues like an appraisal delay, choose a longer lock.
Extensions are available if needed, just like with purchase locks. Communicate with your lender if the refinance is taking longer than expected.
Same Float-Down Options
Float-down options are often available for refinance locks too. If rates drop during your lock period, you may be able to lower your rate by exercising a float-down. Ask your lender if this option is available when you lock.
Bottom Line
Rate locks for refinancing work the same as for purchases. Lock when you are comfortable with the rate, choose a lock period that matches your expected timeline, and ask about float-down options.
