Rate Lock Strategy: When to Lock, When to Float

Trying to time the mortgage market can feel like gambling with your future monthly payment. Deciding whether to lock your rate or float it is one of the bigger choices you make during the homebuying process. Understanding exactly what a rate lock does can help you make that decision with confidence instead of a guess.

What a Rate Lock Actually Does

A rate lock is a guarantee from the lender that your interest rate won't move before you close, as long as you close inside the agreed window and nothing about your application changes. Typical lock periods run 30 to 60 days, though some lenders offer up to 120 days for a longer timeline. Many standard locks are free. If you need extra time, expect a fee somewhere between 0.25% and 1% of your loan amount.

Locking a rate doesn't legally tie you to that lender either. As a Mortgage Broker, Quazel shops your loan across multiple wholesale lenders to find the right fit, not a single rate sheet from a single source.

Can a Locked Rate Still Change?

A lock protects you from the market moving, not from your own file changing. If your loan amount shifts, your credit score drops, or your verified income changes during underwriting, your locked rate can move with it. Keeping your financial picture steady after you lock matters just as much as the lock itself.

The Float-Down Option

Locking early protects you if rates rise, but it can sting if rates drop right after. Some lenders offer a float-down option for exactly that scenario. For a fee, or slightly less favorable initial pricing, you get a one-time right to reset your locked rate lower before closing if the market moves in your favor.

When to Lock, When to Float

There's no single right answer, it depends on your timeline and your tolerance for uncertainty. Generally, locking makes sense once you have a firm closing date and want certainty over your payment. Floating makes more sense earlier in the process, when your timeline is still flexible and you're comfortable with some risk in exchange for a shot at a better rate.

Talk to your Loan Officer about your specific timeline before deciding. This isn't a one-size-fits-all call, and the right move depends on details a general rule of thumb can't account for.

Reach out to a Loan Officer today to talk through your timeline, or use our mortgage calculators to see how different rates affect your monthly payment.

Expect to close one week early.

Frequently Asked Questions

How long does a mortgage rate lock last?

Typical rate lock periods run 30 to 60 days. Some lenders offer extended locks of up to 120 days for buyers who need more time.

Does locking my rate cost anything?

Many standard 30 to 60 day locks are free. Longer lock periods typically carry a fee of 0.25% to 1% of the loan amount.

What happens if rates drop after I lock?

If your lender offers a float-down option, you can use a one-time right to reset your rate lower before closing. This usually comes with a fee or slightly less favorable initial pricing.

Can rates still change after I've locked?

Yes. A locked rate can still move if details on your application change, such as your loan amount, credit score, or verified income.