Mortgage

Rate Lock A lender promise to hold your quoted rate while your loan closes

Priya Shah By Priya Shah, Senior Mortgage Editor · Updated 2026-06-09
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A rate lock is a lender's guarantee to hold a quoted mortgage interest rate for a set period while your loan closes, protecting you from rate increases. Lock periods commonly run 30 to 60 days, timed to match your expected closing date. If market rates rise before you close, your locked rate stays the same; if they fall, you typically don't benefit unless your lock includes a float-down option. A float-down lets you capture a lower rate if rates drop, often for an added fee or under specific conditions set by the lender. Lock terms, fees, and extension policies vary by lender and loan type, so confirm the exact period and what happens if your closing slips. A lock that expires before closing may force you to extend, re-lock, or accept current market rates.
Also Known As
Interest Rate Lock Rate Lock Agreement Locked Rate Lock-In
Used in Context
  1. You secured a 45-day rate lock when you signed your purchase agreement, shielding you from a midweek rate spike before closing.
  2. Because your closing was delayed by appraisal issues, you had to pay a fee to extend your rate lock by another two weeks.
  3. After comparing offers through Dreamy Leads, you chose a lender whose rate lock included a float-down option in case rates dropped.
Related Terms
Mortgage Adjustable-Rate Mortgage (ARM) A home loan with a fixed starter rate that later moves up or down with the market Mortgage Loan Estimate A standardized 3-page form lenders give you to compare mortgage offers Mortgage Closing Disclosure The final, 5-page statement of your actual loan terms and closing costs Mortgage Amortization The schedule that shows how each loan payment splits between principal and interest over time
Frequently Asked Questions

How long does a mortgage rate lock last?

Rate locks commonly last 30 to 60 days, timed to match your expected closing date. Some lenders offer shorter or longer periods. If your closing is delayed past the lock's expiration, you may need to extend it, re-lock, or accept the current market rate, depending on your lender's policy.

What is a float-down option on a rate lock?

A float-down option lets you capture a lower interest rate if market rates drop after you lock in. It's often available for an added fee or under specific conditions set by the lender. Without a float-down, your locked rate stays fixed even if rates fall before closing.

What happens if my rate lock expires before closing?

If your lock expires before you close, you typically must extend it, re-lock, or accept whatever rates the market offers at that time. Extensions often carry a fee. Policies vary by lender, so ask upfront about extension costs and what occurs if your closing date slips.

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