Rate lock timing: when to lock and when to wait
Locking too early or too late can cost you — but so can not understanding what a lock actually means.
Scenario
Lisa went under contract on a $295,000 home on a Monday. Her lender called and asked if she wanted to lock her rate at 7.125%. She said she'd think about it. By Thursday, rates moved up 0.25%. Her monthly payment is now $45 higher for the life of the loan. She didn't understand what a rate lock was, when to use it, or what it would cost her to wait.
What a rate lock is
- A commitment from your lender to hold a specific rate for a set period
- Typically 30, 45, or 60 days — longer locks cost more
- Protects you if rates rise before closing
- If rates fall after locking, you generally don't benefit (unless you have a float-down option)
- Lock expires if closing is delayed beyond the lock period
When to lock
- Lock as soon as you go under contract if you're satisfied with the rate
- Don't wait hoping rates fall — that's speculation, not strategy
- Match lock period to your realistic closing timeline plus buffer
- Ask about float-down options if rates are volatile
- New construction may need 90–180 day locks — these cost more
Things to consider
- What is your closing timeline — and does your lock period cover it with buffer?
- What does a 0.25% rate increase cost you monthly on your loan amount?
- Does your lender offer a float-down option — and what does it cost?
- What happens if your closing is delayed — what is the extension cost?
BRIK takeaway
A rate lock is insurance against rising rates. Lock when you have a rate you can afford and a closing timeline you can meet. Waiting to see if rates drop is gambling. Protect the deal you have.