Savvy Homebuyers Master Mortgage Rate Lock vs Float

The Mechanics of a Rate Lock

A mortgage rate lock is an agreement between you and your lender that secures your interest rate for a defined period, typically ranging from 30 to 60 days. This can provide peace of mind, knowing your rate won't increase before you close, which could translate into significant savings over the life of your loan. However, it's important to note that some lenders may charge a fee for extending the lock period if your closing date is delayed¹. Therefore, understanding the terms and any potential costs associated with a rate lock is essential.