Understanding Interest Rate Locks


A lower interest rate means a lower monthly payment and thousands of dollars saved over the life of your loan. But rates change frequently and timing matters.


Once you’re under contract, securing your rate through a rate lock can protect you from increases while your appraisal, inspection and closing take place. A rate lock holds your interest rate for a set period, usually 30 to 60 days, giving you more certainty as you move toward closing.


When locking your rate, it’s important to:

  • Get the rate commitment in writing
  • Ensure the lock lasts long enough to close
  • Ask whether any fees apply
  • Confirm whether the lock includes both the rate and points

Your lender can help you understand your options and decide if locking in your rate is the best choice for your situation.


GOOD TO KNOW
Rate locks don’t last indefinitely. If your closing is delayed beyond the lock period, ask your lender about possible extensions and any related fees.


Learn more by signing up for our free homebuyer education course!

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