Lock period
Rate locks generally apply for a defined number of days and should align with the expected closing timeline.
Mortgage rate locks
A rate lock protects a pricing window, not the entire transaction.
Mortgage rates can move while a loan is being processed. A rate lock can reduce that market risk, but the lock period, loan terms, closing timeline, and extension costs all matter.
Rate versus cost
Two locks at the same interest rate can carry different points, credits, or lender costs.
Extensions
If closing is delayed beyond the lock expiration, an extension may be required and may carry a cost.
Float-down
Some programs may offer a float-down feature if market pricing improves materially after locking, subject to specific terms.
Changes to the loan
Property, loan amount, occupancy, credit, or other material changes can affect locked pricing.
Timing
Locking too early can create extension risk, while waiting too long leaves the borrower exposed to market movement.