One of the biggest questions homebuyers have during the mortgage process is: “When should I lock in my interest rate?”
Mortgage rates can change daily — sometimes even multiple times a day — which is why understanding how rate locks work can help you feel more confident throughout your homebuying journey.
What Is a Mortgage Rate Lock?
A mortgage rate lock is an agreement between you and your lender that protects your interest rate for a specific period of time while your loan moves through the approval process.
Once your rate is locked, your interest rate and certain loan terms are protected from market fluctuations. This means if rates increase after you lock, your rate stays the same.
For example:
If you lock in a 6.25% interest rate and rates rise to 6.75% before closing, your loan will still use the 6.25% rate (assuming your lock remains valid).
When Does a Rate Lock Happen?
- A rate lock typically happens after you have:
- Completed your loan application
- Provided necessary documentation
- Selected a loan program and terms
- Received a rate quote you are comfortable with
- Have a ratified sales contract
Your loan officer will work with you to determine the best timing based on market conditions, your closing timeline, and your personal situation.
How Long Does a Rate Lock Last?
Rate locks are available in different time periods depending on your lender and loan type. Common lock periods include:
- 15 days
- 30 days
- 45 days
- 60 days
The length of your lock should align with your expected closing timeline. A longer lock period may provide more protection but could come with additional cost depending on market conditions. Additionally, here at Vellum Mortgage, we offer up to 360 days for new construction.
What Happens If My Rate Lock Expires?
If your loan does not close before your rate lock expires, there may be a few options:
- Request a rate lock extension
- Pay an extension fee (depending on the circumstances)
- Re-lock your loan at the current market rate
This is why staying on top of documentation requests and responding quickly throughout the mortgage process is so important!
Can I Get a Lower Rate After Locking?
This depends on your lender and loan program.
Some lenders may offer a “float down” option, which allows borrowers to take advantage of a lower market rate if rates decrease after locking. However, this is not automatically included with every loan, so it’s important to discuss your options before locking.
Should I Lock My Rate?
There is no perfect answer because the market can be unpredictable. The right time to lock depends on:
- Your closing timeline
- Current market conditions
- Your comfort level with potential rate changes
- How quickly your loan is progressing
Your loan officer’s job is to help you understand your options and make the decision that best fits your goals.
The Bottom Line
A mortgage rate lock provides peace of mind by protecting your interest rate while your loan moves toward closing. Understanding how rate locks work can help you feel prepared, informed, and confident throughout the mortgage process.
With Vellum Mortgage – The JBK Team, we’re here to guide you through every step — from application to closing day and everything in between.