Rate Lock Explained: When to Lock and What It Costs to Extend
A rate lock is an agreement with a lender to hold a specific interest rate for a set period of time while a loan moves through processing and underwriting toward closing. Without a lock, the quoted rate can change before closing, since mortgage rates move daily based on market conditions. Why locking matters Rates can move between application and closing, sometimes significantly over a few weeks. Locking removes that uncertainty for the length of the lock period, giving a buyer a fixed number to plan around rather than a moving target. Typical lock periods Lock periods commonly range from around 15 to 60 days, though longer locks are sometimes available, usually at a higher cost. The right length generally depends on how long the closing timeline is expected to take — a purchase with a fast closing date needs a shorter lock than new construction with a longer, less predictable timeline. What locking typically costs Shorter lock periods are often included at no additional co...