I've been shopping for a mortgage and my lender mentioned a rate lock. Can you explain what that is, and whether I need one?
Great question — and definitely one worth understanding before you get too deep into the homebuying process.
Here's the short version: when a lender quotes you a mortgage rate, that rate isn't guaranteed forever. Rates move around — sometimes a lot — based on economic conditions, and what you're quoted on a Tuesday could look very different by the time you actually close.
A rate lock is simply your lender's promise that the rate you've been quoted will still be waiting for you at closing, no matter what happens to the market in between. Think of it like a price hold at your favorite store, you've spotted something you like at a good price, and the store agrees to set it aside for you at today's price even if the price goes up.
How long do locks last?
Most rate locks run for 30, 45, or 60 days, enough to cover the time between your mortgage commitment and closing. Longer locks are sometimes available, though they may come with a modest fee or a slightly higher rate.
What if rates actually drop after I lock?
A classic dilemma. Some lenders offer what's called a "float-down option" — essentially a lock with a parachute built in. If rates fall by a certain amount before you close, you can capture the lower rate rather than staying stuck at your original one. Not every lender offers this, so it's absolutely worth asking about upfront.
So should you lock?
If you've found the right home and you're comfortable with the rate on the table, most mortgage professionals will tell you: lock it. Rates can move fast, sometimes within a single day — and the peace of mind alone tends to be worth it.
When in doubt, ask. We watch the markets every single day. That's exactly what we're here for.