Protect the quoted rate · Before closing
How mortgage rate locks work
A rate lock is time-limited and scenario-specific. Its written conditions matter as much as the headline interest rate.
The short answer
A lock generally holds the agreed rate until its expiration if the loan closes on time and the application does not materially change. Confirm the rate, points or credits, exact deadline, covered scenario, and extension policy in writing.
01 · Locked or floating
Check the top of Loan Estimate page 1
The Loan Estimate identifies whether the interest rate is locked. When it is locked, the form shows the date and time the lock expires. When it is not locked, the rate can change before closing.
A Loan Estimate is not itself an approval, and a displayed rate is not necessarily locked. Ask what action creates the lock and obtain the lender's written confirmation rather than relying on a verbal quote or an undated screenshot.
02 · Match the whole scenario
A rate lock protects more than one isolated number
Confirm the loan program, term, occupancy, property type, loan amount, down payment, credit assumptions, interest rate, points, and lender credits used to price the lock. A different scenario can produce different pricing even on the same day.
- Locked or floating status on Loan Estimate page 1
- Exact expiration date, time, and time zone
- Interest rate, points, credits, and loan scenario covered
- Conditions that permit repricing after application changes
- Extension availability, duration, fee, and who pays
- Float-down or relock terms if market rates fall
03 · Lock conditions
Material application changes can affect a locked rate
CFPB guidance notes that a lock can still change when important application facts change—for example, the loan type or down payment, appraised value, credit score, loan amount, or verified income. The lender should explain the specific change and issue revised disclosures when required.
Avoid new credit, missed payments, unexplained asset transfers, or loan-structure changes before closing. Tell the lender about necessary changes and request their pricing effect in writing.
04 · Closing timeline
Plan for the lock to cover the realistic closing date
If closing occurs after the lock expires, the lender may charge for an extension, offer different pricing, or decline to extend. The Loan Estimate does not necessarily disclose extension cost or whether another lock period would cost more or less.
Ask before choosing a period: how many days it covers, what can delay closing, how extensions are priced, who pays when a delay is attributable to the lender or another party, and whether an extension must be requested before expiration.
05 · Rates can move both ways
A lower market rate does not automatically lower a locked rate
A lock protects against an increase but can also keep the agreed pricing when market rates decline. A float-down or relock feature exists only if the lender offers it under stated conditions. Ask about thresholds, fees, timing, available terms, and whether points or credits are repriced along with the rate.
06 · Final comparison
Compare the Closing Disclosure with the locked scenario
Check the interest rate, loan product, points, lender credits, principal-and-interest payment, and cash to close. If the rate or related pricing changed, ask for the exact reason, the date it changed, and the application fact or lock term the lender relied on.
Do not review rate alone. A lower rate with more points or a higher rate with larger credits moves cost between closing and later payments and should be evaluated as a complete offer.
07 · Preserve the agreement
Keep every disclosure and timeline change together
- Loan Estimate showing the lock status
- Written rate-lock confirmation and conditions
- Application assumptions used for pricing
- Revised Loan Estimates and reasons for changes
- Closing timeline and extension correspondence
- Closing Disclosure rate, points, credits, and lender explanation
08 · Official guidance