What Is a Mortgage Rate Lock in Real Estate?

A mortgage rate lock is an agreement between you and your lender that secures a specific interest rate for a set period, usually 30–90 days. It protects you from rising rates while your loan is processed, giving homebuyers peace of mind during the mortgage approval stage.

✅ How a Mortgage Rate Lock Works

When you lock your rate, your lender guarantees the agreed-upon interest rate as long as your loan closes within the lock period. If rates increase before closing, you’re protected — but if they fall, you may miss out on a lower rate unless your lender offers a “float-down” option.

  • Typical lock periods: 30, 45, 60, or 90 days
  • Applies after your mortgage pre-approval
  • Usually includes a small fee or is built into loan pricing
  • Protects against market fluctuations during underwriting

💡 Rate Lock vs. Float-Down Option

A rate lock freezes your interest rate at today’s level, while a float-down allows you to take advantage of lower rates if they drop before closing. Not all lenders offer float-downs, and they may come with added costs.

  • Rate Lock: Fixed rate for a specific time period
  • Float-Down: One-time opportunity to capture a lower rate
  • Tip: Ask your lender whether float-down protection is available

📆 What Happens When a Rate Lock Expires

If your loan doesn’t close before the lock period ends, your lender may charge a fee to extend it — or require you to relock at the current market rate. Extensions are common if underwriting or appraisal delays occur.

  • Extensions can last 7–15 days, depending on lender policy
  • Fees are typically a small percentage of the loan amount
  • Communicate early to avoid losing your rate lock

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