Rate Lock

A rate lock is a lender's guarantee to hold a specific interest rate for you for a set period, protecting you from rate increases while you move toward closing. Lock periods commonly run for a number of weeks, long enough to cover a typical purchase timeline, and the exact length and any fee depend on the lender. Once locked, your rate will not rise even if the market climbs, which makes budgeting more predictable. The trade-off is that if rates fall after you lock, you usually cannot take the lower rate unless your lender offers a float-down option. If your closing is delayed past the lock expiration, you may need to pay to extend it. Locking is separate from discount points, which actually buy your rate down rather than just holding it.