A rate lock is a lender commitment to a specific interest rate for a stated period. The lender explains the applicable expiration, terms, conditions, and any costs for the selected loan.
Rate LockStrategyTiming
What Is a Rate Lock?
When Should You Lock?
There's no perfect answer, but here are the key considerations:
- Lock early if: Rates are rising, you've found your home and are under contract, or you're risk-averse.
- Float if: Rates are trending down, you have time before closing, or you have a float-down option.
The lender, not Turn Times, issues and honors a rate lock. Ask the lender to explain the available lock terms and how they apply to the complete loan scenario.
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Turn Times Media is the editorial team at Turn Times, producing mortgage education content to help borrowers make informed decisions. All articles are reviewed for accuracy by our compliance team.
