đź”’ Rate Locks Explained: Securing Your Interest Rate
When you’re getting a mortgage, interest rates can feel like they’re changing every time you look. One way to protect yourself from sudden increases is through a rate lock. Here’s what it means and why it matters.
________________________________________
🔍 What Is a Rate Lock?
A rate lock is an agreement between you and your lender that freezes your interest rate for a set period of time—usually 30, 45, or 60 days. This means your rate won’t go up while you finish your loan process, even if the market changes.
________________________________________
🛡️ Why Rate Locks Matter
-
Protection from rate increases – If rates rise during your homebuying process, your locked rate stays the same.
-
Predictable payments – Knowing your rate helps you confidently plan your monthly budget.
-
Less stress – You can focus on finding your home and completing paperwork without worrying about rate swings.
________________________________________
⏳ How Long Do Locks Last?
Rate locks come in different timeframes, typically:
• 30-day lock
• 45-day lock
• 60-day lock
Your timeline, market conditions, and lender options all determine which lock makes sense for you.
________________________________________
🔄 What If Rates Go Down?
Some lenders offer a float-down option, which lets you take advantage of a lower rate if the market improves during your lock period. Not all lenders offer this, and it may come with an extra cost—so always ask.
________________________________________
🧠When Should You Lock Your Rate?
A good rule of thumb:
• Lock when you’re under contract and confident in your timeline.
• Lock if rates are rising and you want peace of mind.
• Talk with your lender (hi, that’s me!) to understand timing based on your loan type and current market trends.
________________________________________
🔍 Ready to Learn More?
If you have questions about getting a mortgage or want to explore your options, reach out! I’m here to help guide you through every step of the process.