A rate lock keeps your interest rate from changing between the offer and closing. The CFPB explains how it works and what to ask your lender.
What a lock does
A lock-in or rate lock on a mortgage loan means that your interest rate won’t change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer. If your rate is not locked, it can change at any time.
When closing slips
A lock may be expensive to extend if your transaction needs more time. The CFPB suggests asking how much it would cost to extend the lock and what happens if your closing is delayed and the lock expires.
Where to check
The top of your Loan Estimate shows whether your rate is locked, and for how long. It doesn’t show what an extension would cost, so ask your lender.
Questions
Common questions
How long does a mortgage rate lock last?
The CFPB says rate locks are typically available for 30, 45, or 60 days, and sometimes longer.
What if my rate lock expires before closing?
The CFPB says it may be expensive to extend a lock if your transaction needs more time, and suggests asking your lender what happens if closing is delayed and the lock expires.
Where do I see if my rate is locked?
The CFPB says to check the top of your Loan Estimate, which states whether your rate is locked and for how long.
Written by Diana Yeji Kim — REALTOR® at eXp Realty, serving Greater Boston in English, Korean, and Japanese.
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