Mortgage Rate Locks: What They Are and How to Use Them Wisely

Written By Cory Metcalf
man looking at a computer frustrated

When buying or refinancing a home, one of the most common questions borrowers ask is: “Should I lock my interest rate now, or wait?” The answer depends on your financial situation and what’s happening in the market. In this blog, I’ll explain what a mortgage rate lock is, how it works, and strategies to make the most of it.

What Is a Mortgage Rate Lock?

A mortgage rate lock is a guarantee from your lender that your interest rate will not change for a set period of time, even if rates go up while your loan is being processed. This lock period is typically 30, 45, or 60 days, but some lenders may offer longer options.

For example, if you lock in at 6.25% today and mortgage rates rise to 6.75% before your loan closes, you’ll still get the 6.25% rate. This protects you from market volatility.

Benefits of Locking Your Rate

  • Stability: You know exactly what your monthly payment will be.
  • Protection: Shields you from sudden rate increases while you shop for a home or finalize paperwork.
  • Peace of mind: Eliminates the stress of watching the market daily.

Risks of Rate Locks

While rate locks can be a smart move, they also come with potential downsides:

  • If rates go down, you could miss out on a lower payment unless your lender offers a “float-down” option.
  • Lock expiration: If your loan doesn’t close before the lock expires, you may need to pay to extend it.
  • Cost: Some lenders charge fees for longer lock periods.

When Should You Lock Your Rate?

Here are some guidelines:

  • When you’re under contract: Locking after your offer is accepted is common.
  • When rates are trending upward: If experts predict rising rates, locking can save you money long-term.
  • When your timeline is clear: Choose a lock period that comfortably covers the time until your closing date.

Still unsure? A mortgage broker can help you evaluate market trends and your loan timeline to decide the best strategy.

Pro Tips for Rate Locks

  • Ask about float-down options: These allow you to take advantage of lower rates if the market shifts.
  • Be realistic about timelines: Always choose a lock period slightly longer than you think you’ll need.
  • Compare lenders: Not all lenders treat rate locks the same way — working with a broker gives you more choices.

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Let’s Find the Right Rate Strategy for You

Locking your mortgage rate can save you thousands over the life of your loan — but timing matters. As a mortgage broker, I track the market daily and can help you decide when to lock, which lenders to consider, and how to protect yourself from surprises.

Contact me today for a personalized consultation, and let’s make sure you get the best rate possible for your home loan.

Cory Metcalf
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