Does locking my rate cost money?

Some lock periods are offered at no additional cost, while longer locks or certain float-down features may carry a fee depending on the lender and loan program.

Can I lock a rate before I have an accepted purchase contract?

This depends on the lender. Some allow locks earlier in the process, while others require an executed purchase agreement first.

What happens if rates drop after I lock?

Without a float-down feature, a standard lock generally holds your rate even if market rates fall, unless your lender's specific policy allows an adjustment.

Is a rate lock the same as final loan approval?

No. A rate lock secures your interest rate, but it is separate from underwriting approval and clear to close status.

Can a lock be transferred to a different property?

Typically not directly, though policies vary; if you change properties, you would generally need a new lock tied to the new transaction.

Mortgage Process

How Does a Mortgage Rate Lock Work?

Understand how mortgage rate locks work, typical lock periods, what happens if a lock expires, and how float-down options function when offered.

Updated 2026-08-17| Applies to: Buyers and refinancing homeowners who are moving through underwriting and want to understand how their rate becomes final.

The short answer

A rate lock is an agreement with a lender that holds a specific interest rate for a set period while your loan is processed. Locks typically run for a defined number of days, and if your closing is delayed past that window, you may need an extension, which can sometimes come with a cost.

What is a rate lock?

Interest rates can move daily based on broader market conditions. A rate lock is a commitment from your lender to honor a specific interest rate for a defined period of time, protecting you from rate increases during that window while your loan moves through processing and underwriting. Without a lock, the rate you were quoted is not guaranteed until it is formally secured.

How long do rate locks typically last?

Lock periods vary by lender and loan type, and are often chosen to match your expected closing timeline. Common lock periods include shorter windows for loans expected to close quickly and longer windows for new construction or purchases with extended timelines. Longer lock periods sometimes come with a slightly different pricing than shorter ones, since the lender is taking on rate risk for a longer stretch.

Scenario	Typical lock consideration
Standard purchase closing soon	Shorter lock period often matches the contract timeline
New construction with a longer build time	Extended lock products may be available through some lenders
Refinance with a flexible closing date	Lock length is often chosen based on how quickly documents can be finalized

What happens if my closing is delayed past the lock expiration?

If underwriting, appraisal, or title issues push your closing date past the lock expiration, you generally have a few options depending on your lender's policies. An extension can often be requested, which may involve a fee or a small rate adjustment depending on the lender and how long the extension needs to be. In some cases, if a lock expires without an extension, the loan may need to be relocked at current market pricing, which could be higher or lower than your original rate.

What is a float-down option?

Some lenders offer a float-down feature, either built into certain lock products or as an add-on, which allows you to take advantage of a lower rate if the market improves after you lock, subject to specific conditions set by that lender. Not all lenders offer float-down options, and the terms vary, so it is worth asking directly whether this feature is available and what triggers it.

When should you lock your rate?

There is no universal answer, since it depends on your risk tolerance, your closing timeline, and market conditions at the time. Some borrowers prefer to lock as soon as they have an accepted contract to remove uncertainty, while others may wait if they are comfortable with the possibility of rates moving in either direction. Discussing your specific timeline and comfort level with your loan officer can help determine timing.

Ask what lock periods are available for your loan type and timeline.
Ask whether extensions are available and what they typically cost.
Ask whether a float-down option exists and what conditions apply.
Confirm your lock expiration date in writing and track it against your expected closing date.

Rate lock terms, availability, and pricing vary by lender and change with market conditions. Confirm specifics directly with your loan officer before relying on any lock period or feature.

Common mistakes to avoid

Assuming a quoted rate is guaranteed before it is formally locked.
Not tracking the lock expiration date against the expected closing date.
Waiting too long to lock when a closing timeline is tight.
Assuming float-down options are automatically included in every lock.
Not asking about extension costs before a delay happens.

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