When to Lock

The ideal time to lock is when you have a signed purchase contract, your loan application is complete, and you are within your closing timeline. At this point, you know exactly when you will close and can choose an appropriate lock period.

Lock Period Options

• 30-day lock — Best rate, but tight timeline. Works if you are closing within 30 days.
• 45-day lock — Slightly higher rate, but more flexibility. The most common choice.
• 60-day lock — Higher rate, but maximum protection. Use if your closing might be delayed.
• 90-day lock — Highest rate, rarely needed. Useful for new construction with uncertain completion dates.

Float-Down Provisions

A float-down provision allows you to lower your locked rate if market rates drop during the lock period. Not all lenders offer this, and it usually costs extra. However, it can be worth it in a volatile market. Ask your lender about float-down options when you lock.

What Happens If Rates Change After Locking

Once you lock, your rate is protected. If rates go up, you keep your lower rate. If rates go down, you are stuck at your locked rate unless you have a float-down provision. Some lenders allow you to break the lock and re-lock at a lower rate, but this usually involves paying a fee.

Lock Expiration and Extensions

If your lock expires before closing, you may need to pay for an extension, which typically costs 0.125-0.25% of the loan amount per month. To avoid this, choose a lock period that comfortably covers your expected closing date. If your closing date is uncertain, a longer lock is worth the extra cost.

Strategy for Rate Lock Timing

The best strategy is simple: watch rates during the loan process, and lock when you get a rate that works for your budget. Do not try to time the market. If the rate is acceptable and the payment fits your budget, lock and move forward. You can always refinance later if rates drop significantly.