How to Lock Your Mortgage Interest Rate

Mortgage interest rates can change frequently, sometimes even throughout the same day. A mortgage rate lock can provide greater certainty during the homebuying process by securing a specific interest rate for a set period while your loan moves toward closing.

What is a Mortgage Rate Lock?

A mortgage rate lock is an agreement with your lender that protects your interest rate for a specified period. If market rates increase during your lock period, your locked rate generally remains the same, provided there are no significant changes to your loan or application. Without a rate lock, your interest rate is considered “floating” and may change with the market.

How Long Does a Rate Lock Last?

The lock period is designed to provide enough time for your mortgage to move through processing, underwriting and closing. First National Bank offers rate lock periods of 30, 45, 60 or 90 days. Longer lock periods may come with a different rate or an additional fee.

In most cases, you can lock your rate once your initial loan is approved. Keep in mind that changes to your application—such as your income, credit, employment, appraisal, loan type or loan term—could affect or void your rate lock.

When Should You Lock Your Rate? 

There is no way to perfectly predict how mortgage rates will move. Rather than trying to time the market, talk with your mortgage lender about current conditions, your expected closing date and whether locking your rate makes sense for your situation.

A rate lock may be worth considering when you're comfortable with the available rate, concerned rates could increase, or simply want greater certainty about your potential mortgage payment before closing.

What If Your Rate Lock Expires? 

Taking steps to keep your mortgage on schedule can help reduce the risk of your rate lock expiring. Getting pre-approved, providing complete documentation and responding promptly to requests from your lender can all help keep the process moving.

If it appears your closing may occur after your rate lock expires, contact your mortgage lender as soon as possible to discuss your options and determine the best next steps.