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The most obvious reason you should lock your rate is so it doesn't change before your closing. A higher rate means more than just a higher monthly payment and thousands of dollars of extra interest charges over the life of your loan.

Your mortgage rate lock is a commitment between you and your lender. As long as your home loan closes by the rate's expiration date, your lender cannot change your rate ? even if current rates suddenly skyrocket. This provides great peace of mind for borrowers.

Locking in your mortgage rate is generally worth it when rates are trending higher and you want to protect yourself from paying a higher rate at closing. A rate lock is also helpful on construction loans that take several months to complete and are subject to building delays.

Some lenders offer a mortgage rate lock once the borrower is preapproved with just an address of a prospective home. Others might wait for the seller to accept the buyer's offer. If you lock too early, however, you might end up exceeding the expiration date and facing extension fees or a new rate.

You won't lock a mortgage rate when you get preapproved. In fact, you can't lock your rate until you have an offer accepted. So what happens if you get preapproved and then rates rise? Well, it could reduce your home buying budget.

Generally, once you've locked in a mortgage rate, the terms are fixed and cannot be negotiated further. However, some lenders offer a float down option, which allows you to take advantage of a lower rate if market conditions change during the rate lock-in period.

When Can You Lock In A Mortgage Rate? When locking your mortgage loan's interest rate, you can choose to secure it from the moment you receive initial loan approval to 5 days before the closing. Some lenders may even lock your rate at the same time they send you the loan estimate.

A mortgage rate lock is an agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage for a specified time period at the prevailing market interest rate. A loan lock provides the borrower with protection against a rise in interest rates during the lock period.

If your interest rate is locked, your rate won't change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer.

But what if you lock a mortgage and then rates fall? Unfortunately, you can't just unlock your rate to avoid paying higher interest. Your best option is to ask your lender about a rate ?float down,? although this will cost you an additional fee. Switching lenders last minute is also an option for refinancers.