Rate Lock

Date of Last Revision: August 8, 2026

What's a lock-in or a rate lock on a mortgage?

A lock-in or rate lock on a mortgage loan means that your interest rate won’t change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application.

Mortgage interest rates can change daily, sometimes hourly. If your interest rate is locked, your rate won’t change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer. If your rate is not locked, it can change at any time.

There can be a downside to a rate lock.  It may be expensive to extend if your transaction needs more time. And, a rate lock may lock you out of a lower interest rate if rates fall after you get your loan offer.

Some lenders may lock your rate as part of issuing a Loan Estimate, but some may not. Check at the top of page 1 of your Loan Estimate to see if your rate is locked, and for how long.   

If your rate is locked, it can still change if there are changes in your application—including your loan amount, credit score, or verified income.  

Here are some common reasons why your interest rate might change, even though it is locked:

  • You decided to change the kind of loan you are requesting or the amount of your down payment.

  • The appraisal on the home you want to buy came in higher or lower than expected.

  • Your credit score changes, for example because you applied for or took out a new loan, or missed a payment on an existing loan or credit card.

  • Your lender could not document your overtime, bonus, or other income.

Rate lock policies vary by lender.  To avoid surprises, ask:

  • "What does it mean if I lock my rate today?”

  • “What rate lock time frame does this Loan Estimate provide?”

  • “Is a shorter or longer rate lock available, and at what cost?”

  • “What if my closing is delayed and the rate lock expires?”

  • “If I lock my rate, are there any conditions under which my rate could still change?”

  • “If I lock my rate, and interest rates go down, what happens?”

If you decide to get a rate lock, you should make sure your rate lock agreement is long enough to cover the time until you close on your loan. If you are concerned that your rate lock period might be too short, ask your lender about switching to a longer rate-lock period now.

Tip: Your Loan Estimate will state whether or not your rate is locked but it will not provide you with information about how much it would cost to extend the rate lock, how much you are paying for the specific rate lock time frame, or whether you could pay more or less for a different time frame. You should ask about those details.

Float-Downs

A mortgage rate lock prevents your interest rate from changing before closing, while a "float-down" is an optional feature that lets you drop to a new, lower market rate if rates fall. According to the Consumer Financial Protection Bureau (CFPB), rate locks protect you from increases, but float-down terms and fees are set entirely by individual lenders rather than federal regulation.

How Float-Downs Work

  • Protection and drops: You lock in a ceiling rate to stop increases, with a chance to capture a lower rate if market conditions improve.

  • Trigger thresholds: Many lenders require market rates to drop by a specific minimum amount (such as 0.25%) before you can activate the float-down.

  • Usage limits: Most policies only permit you to exercise a float-down a single time during your lock period, and it must be requested well before your closing date.

  • Associated fees: Float-downs are rarely free; lenders often charge an upfront fee or higher points to cover the option.

Key Questions for Your Lender

  • Does your standard rate lock include a float-down, or is there an extra fee to add it?

  • What is the exact minimum rate drop required to trigger the float-down?

  • How many days before closing is the absolute deadline to request a float-down adjustment?

Don't see what you're looking for?

Browse related questions

  • What information do I have to provide a lender in order to receive a Loan Estimate?

    Lenders are legally required to provide you with a Loan Estimate once you have provided six pieces of information.

    Lenders are required to provide you with a Loan Estimate once you have provided:

    • your name,

    • your income,

    • your Social Security number (so the lender can pull a credit report),

    • the property address,

    • an estimate of the value of the property, and

    • the desired loan amount.

    Lenders cannot require you to provide additional information. For example, you do not have to provide a home purchase agreement or documents verifying your income in order to get a Loan Estimate.

    However, it’s often a good idea to share more information if you have it. The more your lender knows about your situation, the more accurate your Loan Estimate will be. You may want to share details about your finances, the property, and kind of loan you are interested in.

    See a sample Loan Estimate form with interactive tips and definitions.

    Tip

    Once you’ve submitted the request, each lender is required to send you a Loan Estimate within three business days. Allow a few extra days for mail delivery if the lender is using postal mail. If you haven’t received a Loan Estimate within that timeframe, call the lender and ask why.

    When you receive a Loan Estimate, the lender has not yet approved or denied your loan application. Receiving the Loan Estimate shows you what loan terms the lender expects to offer if you decide to move forward.

    Note: You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:

    • A reverse mortgage

    • A home equity line of credit (HELOC)

    • A manufactured housing or mobile home loan not secured by real estate

    • A subordinate loan through certain types of homebuyer assistance programs

    For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 Settlement Statement.

  • To apply for a mortgage loan, you will have to provide a lender with personal financial information and information about the house you want to finance.

    The first step of applying for a mortgage is to find the quoted rate you qualify for using our Mortgage Rate Finder

    The second step of applying for a mortgage is to submit a request for a Soft Credit Check.

    The third step of applying for a mortgage is to request a Loan Estimate. Once you request the soft credit check, a lender dedicated to Mortgage Automated will automatically send you a loan estimate after you provide the following information on the application:

    To receive a Loan Estimate, you need to submit only six key pieces of information:

    • Your name

    • Your income

    • Your Social Security number (so the lender can check your credit)

    • The address of the home you plan to purchase or refinance

    • An estimate of the home's value

    • The loan amount you want to borrow

    You will provide this information this information on the application.

    Although you're not required to provide documents in order to get a Loan Estimate, it's a good idea to share what you have with the lender. The more information the lender has, the more accurate your Loan Estimate will be.

    Tip: It's a good idea to request Loan Estimates to see all the fees. This way you will have full disclosure and know what you are paying for. A lender is required to send you a Loan Estimate within three business days of receiving your six key pieces of information.

    Once you're ready to choose a loan offer, you need to notify the lender that you are ready to proceed with the loan application. If you don't notify a lender that you'd like to proceed within 10 business days, the lender may revise the Loan Estimate or close your application as incomplete and you may need to start over. The 10 business days are calculated from when the lender delivers the Loan Estimate to you or places it in the mail, whichever is earlier.

    Once you've notified the lender that you would like to proceed with an application, the lender may ask you to provide additional information and documents to verify the information you have already submitted. The lender processes this information and may follow up with you to request additional information or clarification. Once the lender has received all the necessary information, the lender approves or denies your loan application.

  • An annual percentage rate (APR) reflects the mortgage interest rate plus other charges.

    There are many costs associated with taking out a mortgage. These include:

    What is a mortgage interest rate?

    The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan.

    What is a mortgage APR?

    An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

    If you have applied for a mortgage and received a Loan Estimate from one or more lenders, you can find the interest rate on page 1 under “Loan Terms,” and the APR on page 3 under “Comparisons.”

  • Getting a mortgage

    Buying a House: This is the biggest purchase you will make in your life.

    Whether you’re just thinking about buying a home or about to close, we help you take control of the process.

    Maintaining a mortgage

    Paying your mortgage is important. We can help you understand how to read your mortgage statement, where to get help if you are struggling to pay your mortgage, and more.