Why Are Mortgage Rate Locks a Good Idea?

When applying for a mortgage or student loan, your lender may offer you a rate lock—an opportunity to lock in your interest rate for the time between when you make an offer and when you close on a home.

The rate lock offer typically lasts around 30-60 days, and you might have to pay a fee for the service, but it can give you a little more time to find the perfect house or compare refinancing options, and ensure the rate you were initially quoted will be the same when you close.

If there are changes to your loan application, such as the loan amount – or to your personal financial information, such as your credit score – the rate you “locked” can change too. Policies and terms differ by lender, so be sure to read the fine print when shopping around. And when you’re ready, let the hunt begin!