For most buyers, the best time to lock a mortgage rate is after your offer is accepted, once you know the loan amount and closing date and the payment works for your budget. Lock for long enough to cover your close of escrow date with a few days to spare. Waiting for a lower rate is a bet. It only makes sense if you can afford to lose it.
This guide explains how rate locks work, how to choose the timing and length, what can still change a locked rate, and what to ask your lender before you commit. Ali Shariat is both a Realtor and a licensed loan officer, so it also covers how the lock fits with a California purchase contract.
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Quick Guide
- A rate lock holds your rate and pricing for a set period, as long as you close in time and your application doesn't change.
- Locks are typically offered for 30, 45 or 60 days, and sometimes longer.
- Most buyers lock after an accepted offer. Locking before you have a property usually isn't possible unless your lender offers a special program.
- Your Loan Estimate shows whether your rate is locked and until when.
- Ask about extension costs and float-down options before you lock, not after.
What a Rate Lock Is (and Isn't)
A rate lock is the lender's commitment to hold a specific interest rate, with a specific number of points or lender credit, for a set period while your loan is processed. The CFPB describes it as a rate that won't change between the offer and closing, as long as you close within the lock period and there are no changes to your application.
A lock is not a guarantee that the loan will close, and it doesn't freeze every closing cost. It covers the rate and its pricing. Third-party fees, such as title and escrow charges, are estimated separately.
Check Your Loan Estimate
Some lenders lock when they issue the Loan Estimate and some don't. Look at the top of page 1 of the Loan Estimate. It shows whether the rate is locked and, if so, the date and time the lock expires.
If you lock after the first Loan Estimate, federal rules require the lender to send a revised Loan Estimate within three business days of the lock date. That revised form shows the locked rate, points and lender credits. See 12 CFR 1026.19(e)(3)(iv)(D).
When to Lock Your Mortgage Rate
Nobody can reliably predict next week's rates. Mortgage rates respond to inflation reports, bond markets and expectations about Federal Reserve policy, and they can move on any given day. So the decision is about risk, not forecasting. Ask yourself how much a rate increase would hurt, and how long you'd be exposed.
| Your situation | Usually leans toward | Why |
|---|---|---|
| Under contract, closing within 30–45 days, payment fits your budget | Lock | Your loan amount and dates are known, and a short lock is usually the cheapest kind. |
| Your DTI is near the lender's maximum | Lock | A higher rate raises the payment and could push you over the limit. |
| Cash to close is tight | Lock | A rate jump can raise the points needed to buy the same rate. |
| Still shopping, no accepted offer | Float | There's nothing to lock yet unless your lender offers a lock-before-contract program. |
| New construction closing months out | Ask about extended locks | Long locks are available from some lenders, but they usually cost more. |
| Long timeline, strong reserves, flexible budget | Floating is an option | You can absorb a rise if rates move the wrong way. |
A practical rule: if the payment at today's rate works and a half-point increase would break your budget, lock. If you'd be fine either way, you have room to wait. But set a date by which you'll lock no matter what.
If you want to watch the market, Freddie Mac publishes a weekly national average in its Primary Mortgage Market Survey. It's useful for spotting the trend, but it's an average, not your quote. Your rate depends on your credit, down payment, loan type and the points you pay. The CFPB's Explore Interest Rates tool shows how those factors change the range.
How a Rate Lock Fits a California Purchase Contract
The C.A.R. Residential Purchase Agreement lets you write the loan terms your loan contingency depends on, including a maximum interest rate and the points you'll pay. Locking early protects you from a rate rising above what you wrote. And once you remove your loan contingency, a later rate increase is your problem, not a reason to cancel. That's one more reason to have the lock in place before you remove contingencies.
How Long to Lock For
Match the lock to your close of escrow date, then add a cushion for the usual surprises: a late appraisal, an extra underwriting condition or a recording delay.
| Lock period | Good fit for | Watch out for |
|---|---|---|
| 30 days | Clean files with a 21–25 day escrow | Little room for a late appraisal or condition |
| 45 days | Most 30–35 day California escrows | Usually priced a bit higher than 30 days |
| 60 days | Longer escrows, complex income, condo reviews | Higher cost; locked early if rates later fall |
| Extended (90+ days) | New construction | Upfront fees and stricter terms are common |
Longer locks generally cost more, because the lender carries the rate risk for longer. Ask for the price of a 30-, 45- and 60-day lock side by side, then compare the difference with the cost of an extension. Our mortgage process timeline shows where the typical escrow spends its days.
What Can Still Change a Locked Rate
A lock is based on the file as it stood when you locked. According to the CFPB, your rate can still change if something material changes, such as:
- You change the loan type, loan amount or down payment.
- The appraisal comes in higher or lower than expected, which changes your loan-to-value ratio. See our guide on what to do after a low appraisal.
- Your credit score changes, for example because of new debt or a late payment.
- The lender can't document income you were counting on, such as overtime or a bonus.
If your rate or fees on the Closing Disclosure differ from the Loan Estimate, the CFPB's guide on rate and fee changes before closing explains what to ask your lender.
Extensions, Relocks and Float-Downs
Lock Extensions
If closing slips past your lock expiration, you'll usually need to pay to extend it. The CFPB warns that extensions can be expensive, and the Loan Estimate doesn't disclose the cost, so ask up front. Find out who pays if the delay is the lender's fault.
Expired Locks and Relocks
Lenders handle expired locks differently. Some reprice the loan at current market rates, and some use the worse of the original and current pricing. Get the lender's relock policy in writing.
Float-Down Options
A float-down lets you take a lower rate if the market improves after you lock. Not every lender offers one. Those that do may charge a fee and require rates to drop by a set amount. If you expect a long escrow, ask whether a float-down is available and what triggers it.
Points and Buydowns
Locking also sets your points or credits. If you plan to pay points to lower the rate, decide that before you lock. Our guide on buying points to reduce your mortgage rate shows how to find the break-even point.
Questions to Ask Before You Lock
- Is my rate locked now? If not, when do you recommend locking?
- What's the price difference between a 30-, 45- and 60-day lock?
- What does an extension cost per day or per week, and who pays if the delay is on your side?
- What happens if my lock expires: relock at market, or worst-case pricing?
- Do you offer a float-down, and what does it cost?
- What changes to my file would change the locked rate?
Get the answers in writing, and keep a copy of your lock confirmation with the expiration date and time.
Key Takeaways
- Most buyers lock after their offer is accepted, when the loan amount and closing date are known.
- Choose a lock that covers your close of escrow date with a cushion. Extensions can cost more than a slightly longer lock.
- A locked rate can still change if your loan amount, credit, income or appraised value changes.
- Check page 1 of your Loan Estimate for lock status, and expect a revised Loan Estimate within 3 business days of locking.
- Ask about extensions, relock policy and float-downs before you commit.
FAQs
When should I lock my mortgage rate?
For most buyers, right after the offer is accepted and the loan application is in, once you know the closing date and the payment works. Lock sooner if a rate increase would break your budget or push your DTI over the limit. Wait only if you can comfortably absorb a higher rate.
How long does a mortgage rate lock last?
Locks are typically available for 30, 45 or 60 days, and sometimes longer, especially for new construction. Pick a period that covers your close of escrow date plus a few days of cushion. Longer locks usually cost more.
Can I lock a rate before I find a house?
Usually not with a standard lock, because the lender needs a property and loan amount. Some lenders offer lock-before-you-shop programs, often for a fee or with conditions. Ask what happens to the fee if you don't find a home in time.
What happens if rates drop after I lock?
With a standard lock, you keep the locked rate. That's the trade-off for protection against increases. If your lender offers a float-down, you may be able to take part of the drop, usually for a fee and only if rates fall by a set amount.
Does locking a mortgage rate cost money?
Standard locks for common periods are often built into the rate pricing, with no separate fee. Longer locks, extensions, float-downs and lock-before-contract programs often do cost extra. Ask your lender for the exact cost of each option in writing.
Get a Lock Strategy That Fits Your Escrow
Ali Shariat is a Realtor (DRE #02115442) and a licensed loan officer with Loan Factory (NMLS #1969265). He can line up your lock period with your contract deadlines so the rate and the close of escrow date expire in the right order. Contact Ali or call (949) 818-1000.
