How to Lock Your Mortgage Rate

Rate lock periods typically range from 30 to 60 days, but can vary:

• Standard options:

  Most lenders offer 30, 45, or 60-day locks.

• Extended locks:

  Longer periods (e.g., 90 days) may be available, often with additional fees.

• Construction loans:

  These may have special lock options due to their longer timelines.

• Choose a period that comfortably covers your expected closing time, with some buffer for unforeseen delays.

Exiting a rate lock is generally not possible without penalty:

• Limited circumstances:

  Some lenders may allow cancellation if rates drop significantly, but this is rare and often comes with fees.

• Float-down options:

  Some locks include provisions to "float down" to a lower rate if market conditions change, but conditions apply.

• Consider carefully before locking:

  Once locked in, you're typically committed to that rate, so make an informed decision.

A float-down allows you to benefit from lower rates if they occur during your lock period:

• Conditional:

  Typically, specific criteria must be met, like a minimum rate decrease and timing restrictions.

• Fees:

  Float-down options often come with additional fees.

• Added flexibility:

  It provides some protection against missing out on potential savings if rates drop.

Some lenders offer pre-approval with a rate lock:

• Conditional approval:

  You'll need to meet certain criteria and provide documentation.

• Limited time frame:

  These locks typically have shorter durations than those obtained after finding a house.

• Useful for house hunting:

  It gives you a clear idea of your budget and shows sellers you're a serious buyer.

Yes, your credit score can influence rate lock options:

• Higher credit scores:

  Typically lead to better rates and more favorable lock terms.

• Lower credit scores:

  May result in higher rates or shorter lock periods.

• Improve your credit:

  If possible, work on improving your credit before locking in a rate to secure the best deal.