What Is Rate Lock?
A rate lock is an agreement between you and your lender that guarantees a specific interest rate for a set period (usually 30-60 days) while your loan is processed. It protects you from rate increases during the closing process.
Key Facts
- Lock periods are typically 30, 45, or 60 days — longer locks may cost slightly more.
- If rates go up after you lock, you're protected. If rates go down, you're usually stuck (unless you have a float-down option).
- If your lock expires before closing, you may need to pay for an extension or accept a new rate.
- Some lenders offer a "float down" option that lets you benefit if rates drop after locking.
- Rate locks are typically free for standard lock periods.
Real-World Example
You lock in 6.75% for 45 days. Over the next month, rates jump to 7.125%. Because you locked, you still get 6.75% — saving you about $150/month on a $585,000 loan.
Why It Matters
Rates can change daily. A rate lock protects your budget and monthly payment from volatility during the weeks it takes to close. Talk to your lender about when to lock — timing matters.
En Español
Un bloqueo de tasa es un acuerdo entre tú y tu prestamista que garantiza una tasa de interés específica por un período determinado (generalmente 30-60 días) mientras se procesa tu préstamo. Te protege contra aumentos de tasa durante el proceso de cierre.