How Rate Locks Protect Homebuyers
Mortgage rates change daily—sometimes hourly. Between your loan application and closing day, rates could rise significantly. A rate lock eliminates that uncertainty.
When you lock your rate, your lender guarantees that specific interest rate for a set period (typically 30-60 days). If rates climb after you lock, you still get your original rate. According to Bankrate, a 0.25% rate increase on a $300,000 loan could cost you over $18,000 in additional interest over 30 years.
How Rate Locks Work
Should You Lock Your Rate?
Pros of Locking
- Protection from rising rates
- Budget certainty for your monthly payment
- Peace of mind during closing process
Things to Consider
- Miss out if rates drop (without float-down)
- Lock can expire if closing is delayed
- Longer locks may cost more
Pro Tip: Timing Your Lock
Most borrowers lock after getting a signed purchase agreement. This gives you a clear closing timeline to choose the right lock period. Add 5-7 days buffer to your expected closing date when selecting lock length.
Rate Lock Periods Compared
| Lock Period | Best For | Typical Cost |
|---|---|---|
| 30 days | Fast closings, simple transactions | Usually free |
| 45 days | Standard purchases | Usually free |
| 60 days | Complex transactions, cautious buyers | Free or small fee |
| 90-120 days | New construction | 0.125%-0.375% fee |
Lock period costs vary by lender. Ask about specific fees when comparing loan offers.
Frequently Asked Questions
Everything you need to know about mortgage rate locks
A mortgage rate lock is a lender's promise to hold a specific interest rate for you while your loan is processed. According to the Consumer Financial Protection Bureau (CFPB), this protects you from rate increases during the typically 30-60 day period between application and closing.
Think of it as "freezing" your rate. If market rates rise after you lock, you still get your locked rate. This protection gives you payment certainty while you complete the homebuying process.
Ready to Lock Your Rate?
Get pre-approved today and lock in your rate before it changes. Our team serves homebuyers across Arizona.