What a rate lock does — and what it does not
Locks, float-downs, extensions and the timing question that actually matters: does your lock outlast your contract?
A rate lock is a lender commitment to hold your interest rate for a set number of days while your loan is processed, regardless of what the market does in between. It protects you from rates rising. It also means you do not automatically benefit if they fall.
Locks have a length, and the length has a price
Thirty, forty-five and sixty-day locks are standard, and longer locks cost slightly more in rate or points because the lender is carrying more risk. The right length is the one that comfortably covers your closing date plus a buffer — not the cheapest one on the sheet.
The mistake worth avoiding
A 30-day lock on a 35-day contract will expire before you close, and an extension costs money. New construction with a moving completion date is the classic version of this problem. We line the lock up against the contract, not against a calendar guess.
Float-downs
Some locks include a one-time option to re-lock lower if the market improves meaningfully before closing. It is not free and it is not unlimited, but in a falling-rate stretch it is worth asking about rather than discovering afterward that it existed.
Written by
Travis Nicolaysen
Loan Officer, Fairway Home Mortgage · NMLS #1782820
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