Rate locks: when to lock, when to float
Few parts of the mortgage process cause more second-guessing than the rate lock. Lock too early and you might miss a dip; float too long and a jump can raise your payment. Here is how to think about it without trying to time the market.
What a lock does
A lock is simply the lender holding your rate for a set window — commonly 15 to 60 days — so that market moves during processing do not change your deal. It is insurance against rates rising before you close. A plain lock does not automatically drop if rates fall, though some locks include a float-down option for exactly that case.
Lock vs. float
Once you are under contract with a real closing date, locking usually makes sense: you remove risk at the moment it matters most. Floating is a bet that rates improve before you close — sometimes reasonable early in a long escrow, riskier as closing nears. The honest answer is that it depends on your timeline and how much payment uncertainty you can stomach.
How Sam handles it
Rather than guess, Sam watches the market against your specific timeline and lays out the trade-off in dollars so you can decide with eyes open — and structures the lock length to your contract, not a generic default.
Rate lock FAQs
What is a mortgage rate lock?
A rate lock is a lender commitment to hold a specific interest rate for you for a set period while your loan is processed, protecting you if rates rise before closing. If rates fall, a standard lock generally does not follow them down unless your lock includes a float-down option.
How long does a rate lock last?
Common lock periods run from about 15 to 60 days, timed to your expected closing. Longer locks are available but usually cost more in rate or fees. The right length depends on your contract timeline and how much cushion you want.
Should I lock or float my rate?
Locking removes uncertainty and is often wise once you are under contract with a firm closing date. Floating keeps the option to benefit if rates improve, but you carry the risk if they rise. There is no universally correct answer — it depends on your timeline, risk tolerance, and how close you are to closing.
Educational only; not a rate quote, APR, or commitment to lend. Lock terms and float-down availability vary by lender and program. Sam Razavi · NMLS #985351 · through C2 Financial Corporation, NMLS #135622.