# Rate lock

> A rate lock is a lender’s promise to hold your mortgage interest rate for a set period, typically 30 to 60 days, as long as you close in time and nothing in your application changes.

Also called: interest rate lock, lock-in, locked rate. Topic: Mortgages and loans.

A lock protects you if rates rise before closing, as long as you close within the lock period and your application doesn’t change. It also means you won’t automatically get a lower rate if they fall.

## How long does a rate lock last?

The CFPB says locks are typically available for 30, 45 or 60 days, and sometimes longer. Choose a period that covers the whole road to closing, including [underwriting](https://brokerandagent.com/glossary#underwriting), the [appraisal](https://brokerandagent.com/glossary#appraisal) and the three business days you get to review your [Closing Disclosure](https://brokerandagent.com/glossary#closing-disclosure).

Lenders may charge more for a longer lock, as a fee or as a slightly higher rate or more [discount points](https://brokerandagent.com/glossary#discount-points). Ask what each lock length would cost before you choose.

## When should you lock your rate?

Most lenders let you lock once you have a signed contract and a property address. Locking early protects you from a rise; waiting is a bet that rates will fall. Neither is a sure thing, and no one can reliably predict short-term rate moves.

Once you lock, the lender must send a revised [Loan Estimate](https://brokerandagent.com/glossary/loan-estimate) within three business days showing the locked rate, points and lender credits. Page 1 of the Loan Estimate says whether your rate is locked and when the lock expires.

## Can a locked rate still change?

Yes, if your application changes. The CFPB lists examples: a different loan type or down payment, an appraisal that comes in different from expected, a change in your [credit score](https://brokerandagent.com/glossary#credit-score), or income you can’t document. Any of these can change your rate or what the loan costs, lock or no lock.

A lock also doesn’t cover delays. If closing slips past the expiration date, you may have to pay to extend the lock, which the CFPB warns can be expensive, or take whatever rate is available then.

## What is a float-down?

Some lenders offer a float-down option that lets you take a lower rate if rates fall after you lock, usually for a fee and only if rates drop by a set amount. Terms vary widely. The CFPB suggests asking every lender: “If I lock my rate, and interest rates go down, what happens?”

## What a lock protects on a $360,000, 30-year loan

| | |
| --- | --- |
| Locked rate | 6.50% |
| Principal and interest at 6.50% | $2,275/month |
| If rates rise to 7.00% before closing | $2,395/month |
| Difference | $120/month, about $1,436 a year |
| Over the full 30 years | About $43,072 |
| Example extension fee at 0.125% of the loan | $450 |

Extension pricing varies by lender, so the 0.125% is only an illustration. Ask for your lender’s terms in writing before you lock.

## Common mistakes

- Choosing a lock period that ends before a realistic closing date.
- Changing your loan amount or down payment after locking and expecting the same rate.
- Assuming a lock means you’ll get a lower rate if the market improves.
- Comparing a locked quote from one lender with an unlocked one from another.

## Questions

### Does it cost money to lock a rate?

It depends on the lender and the length of the lock. Some charge nothing extra for a standard period, while longer locks and extensions can cost a fee or a higher rate, so get the terms in writing.

### What happens if my rate lock expires?

You can usually extend it for a fee or relock at the current market rate, which may be higher or lower. Ask about extension terms before you lock.

### Can you change lenders after locking?

Yes, a lock doesn’t require you to close with that lender. You’d start over with a new application and lock elsewhere, and you may lose fees you’ve already paid.

Calculator: [Mortgage calculator](https://brokerandagent.com/tools/mortgage-calculator)

## Related terms

- [Interest rate](https://brokerandagent.com/glossary#interest-rate): A mortgage interest rate is the yearly percentage a lender charges to lend you money, applied to your loan balance. It sets your principal-and-interest payment and depends on the market, your credit, down payment, loan type and points.
- [Loan Estimate](https://brokerandagent.com/glossary/loan-estimate): A Loan Estimate is the standard three-page form a lender must give you within three business days of a mortgage application, showing the estimated rate, monthly payment, closing costs and cash to close so you can compare offers.
- [Discount points](https://brokerandagent.com/glossary#discount-points): Discount points are an upfront fee paid at closing to lower a mortgage’s interest rate. One point costs 1% of the loan amount, and how much each point lowers the rate varies by lender and by day.
- [Closing Disclosure](https://brokerandagent.com/glossary#closing-disclosure): A Closing Disclosure is the five-page form showing your mortgage’s final terms, monthly payment and closing costs. Your lender must get it to you at least three business days before closing so you can compare it with your Loan Estimate.
- [Annual percentage rate](https://brokerandagent.com/glossary#annual-percentage-rate): Annual percentage rate is the yearly cost of a loan, combining the interest rate with certain fees such as points and origination charges. Because it includes fees, it’s usually higher than the interest rate and useful for comparing offers.

## Sources

- [CFPB: What’s a lock-in or a rate lock on a mortgage?](https://www.consumerfinance.gov/ask-cfpb/whats-a-lock-in-or-a-rate-lock-en-143/)
- [CFPB: Why did I receive a revised Loan Estimate?](https://www.consumerfinance.gov/ask-cfpb/i-received-a-revised-loan-estimate-from-my-lender-showing-a-higher-interest-rate-and-increased-closing-costs-what-does-this-mean-en-1991/)
- [12 CFR 1026.19: Loan Estimate and Closing Disclosure timing](https://www.law.cornell.edu/cfr/text/12/1026.19)

Checked 2026-10-02 by the Broker & Agent team. General information, not legal, tax or lending advice.

Source: https://brokerandagent.com/glossary/rate-lock