A mortgage rate lock holds your interest rate between your loan offer and closing, as long as you close within the lock period and nothing changes in your application. The CFPB says locks are typically available for 30, 45, or 60 days, and sometimes longer. Your Loan Estimate shows at the top of page 1 whether your rate is locked and, if it is, the date and time the lock ends.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton. "Should we lock today?" is one of the most common questions I get once a buyer is under contract in Temple, Killeen, or Georgetown. This guide covers how a lock works, what a lock does not protect you from, and the questions the CFPB suggests asking any lender. I don't quote rates or lock pricing here, because both change and depend on your loan.
Under contract or close to it? Get Pre-Approved or Book a Free Consultation.
What Is a Mortgage Rate Lock?
The CFPB defines a lock-in or rate lock as a commitment that your interest rate won't change between the offer and closing, as long as:
- You close within the specified time frame, and
- There are no changes to your application.
Mortgage rates can change daily, sometimes hourly, according to the CFPB. If your rate isn't locked, it can change at any time until it is.
Here's how Fairway describes it on fairway.com: "Locking a mortgage interest rate means that Fairway and the associated investor have committed to a specific interest rate on your behalf. Your loan officer watches the market on a daily basis to make sure that when we lock your interest rate, it is in your best interest."
How Long Does a Rate Lock Last?
The CFPB says rate locks are typically available for 30, 45, or 60 days, and sometimes longer. The goal is simple: the lock should cover the time until you close. The CFPB suggests that if you're worried your lock period is too short, ask your lender about switching to a longer lock period now, not when it's about to run out.
Hypothetical example: A buyer signs a purchase contract with a closing date 40 days out. A 30-day lock taken that day would expire about 10 days before closing, so the buyer would need an extension or a new lock. A 45-day lock covers the full contract period with some room for a short delay. This is a hypothetical timeline. Lock periods available, and what they cost, depend on the lender and the loan.
Things that commonly stretch a Texas purchase timeline:
- The option period and any renegotiation after inspections. See my Texas option period and option fee guide.
- Appraisal scheduling and any value issues.
- Underwriting conditions that need more documents. See the mortgage underwriting process.
- Title, survey, or repair items that move the closing date.
Where the Rate Lock Shows on Your Loan Estimate
The Loan Estimate is the standard three-page form the CFPB says lenders must give you within three business days of receiving your application. For the rate lock, federal rules (12 CFR 1026.37(a)(13)) require the top of page 1 to show:
- Whether the interest rate is locked, and if it is, the date and time (with time zone) when the lock ends.
- A statement that the interest rate, points, and lender credits can change unless the rate is locked.
- The date and time when the estimated closing costs expire.
If you lock after you get your Loan Estimate, 12 CFR 1026.19(e)(3)(iv)(D) requires the lender to give you a revised Loan Estimate within three business days of the lock, showing the locked rate and the points, lender credits, and other charges that depend on it.
What the Loan Estimate won't tell you: the CFPB points out that it doesn't show how much it would cost to extend the lock, how much you're paying for that lock period, or whether a shorter or longer period would cost more or less. You have to ask. The CFPB's Loan Estimate explainer also notes that origination charges can include rate-lock fees, so compare the totals.
Later, you'll get the Closing Disclosure at least three business days before closing. Compare it with your latest Loan Estimate. My closing costs in Texas guide shows what to look for.
What Can Still Change a Locked Rate
A lock protects you from market changes, not from changes in your loan. The CFPB lists common reasons a locked rate can still change:
| What Changes | CFPB Example |
|---|---|
| Your loan type or down payment | You switch the kind of loan or change your down payment amount |
| The appraisal | The home appraises higher or lower than expected |
| Your credit score | You apply for or take out a new loan, or miss a payment on a loan or card |
| Your income documentation | The lender can't document overtime, bonus, or other income |
How to protect your lock:
- Don't open new credit or finance furniture before closing. The CFPB notes that multiple mortgage credit checks within 45 days count as one inquiry, but new credit of other kinds can change your score. My mortgage preapproval guide covers what to avoid.
- Keep your job and income steady, and tell me early about changes. Overtime and bonus income need documentation. See debt-to-income ratio for a mortgage.
- Don't change your down payment or loan type late in the process without asking how it affects the lock.
- Keep paying every bill on time until after closing.
The Downsides of a Rate Lock
The CFPB names two:
- Extending a lock may be expensive if your closing needs more time.
- A lock may keep you from a lower rate if rates fall after you lock.
That's why the CFPB suggests asking what happens if rates go down after you lock. Lock policies vary by lender, so get the answer in writing for your loan.
When Should You Lock Your Rate?
There's no single right day, and no one can predict where rates go next. A few practical guideposts:
- Match the lock to the contract. Count the days from today to your closing date, then add a cushion for common delays.
- Know your budget at the locked rate. Run the payment at the rate you're offered and decide whether it works before you lock.
- Weigh points and buydowns at the same time. If you're considering paying mortgage discount points or using a seller-paid 2-1 buydown, lock the rate and those costs together so the Loan Estimate reflects your actual structure.
6 Questions to Ask Before You Lock
The CFPB suggests asking every lender:
- "What does it mean if I lock my rate today?"
- "What rate lock time frame does this Loan Estimate provide?"
- "Is a shorter or longer rate lock available, and at what cost?"
- "What if my closing is delayed and the rate lock expires?"
- "If I lock my rate, are there any conditions under which my rate could still change?"
- "If I lock my rate, and interest rates go down, what happens?"
I'm happy to walk through each of these for your loan before you decide.
Frequently Asked Questions
What is a mortgage rate lock?
A mortgage rate lock is a commitment that your interest rate won't change between your loan offer and closing, as long as you close within the lock period and nothing changes in your application. Without a lock, the rate can change at any time, and the CFPB notes that mortgage rates can move daily or even hourly.
How long does a mortgage rate lock last?
The CFPB says rate locks are typically available for 30, 45, or 60 days, and sometimes longer. Choose a lock period that covers the time until your closing date. If you think your lock may be too short, ask your lender about a longer lock period early rather than waiting until it is about to expire.
Can a locked mortgage rate still change?
Yes. A lock protects you from market changes, but the rate can still change if your application changes. The CFPB lists examples such as changing your loan type or down payment, an appraisal that comes in higher or lower than expected, a credit score change, or income like overtime or bonus that the lender cannot document.
How do I know if my rate is locked?
Check the top of page 1 of your Loan Estimate. Federal rules require it to show whether your interest rate is locked and, if so, the date and time the lock ends. If you lock after receiving your Loan Estimate, your lender must send a revised Loan Estimate within three business days of the lock.
What happens if my rate lock expires before closing?
Ask your lender before you lock, because policies vary. The CFPB says extending a lock may be expensive, and the Loan Estimate does not show what an extension would cost. If you expect delays, ask about a longer lock period up front so the lock covers your closing date.
Ready to Talk About Locking Your Rate?
I'll line up your lock period with your contract dates and walk you through the Loan Estimate line by line.
Get Pre-Approved | Book a Free Consultation
Related Guides
- Mortgage Discount Points
- 2-1 Buydown in Texas
- Mortgage Preapproval in Texas
- The Mortgage Underwriting Process
- Closing Costs in Texas
- Earnest Money in Texas
Sources
- Consumer Financial Protection Bureau: What's a lock-in or a rate lock on a mortgage?, Loan Estimate explainer, What is a Loan Estimate?, What is a Closing Disclosure?, and What exactly happens when a mortgage lender checks my credit?
- eCFR: 12 CFR 1026.37 and 12 CFR 1026.19
- Fairway Independent Mortgage Corporation: What does it mean to lock my interest rate?
Taylor Ring, NMLS #2809683 | Fairway Independent Mortgage Corporation, NMLS #2289 | The Wood Group of Fairway, 127 Lake Rd Ste 300, Belton, TX 76513 | Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval and program guidelines, and approval, rates, lock periods, and program availability are not guaranteed. Lock terms and any costs depend on the loan and are disclosed by your lender. This article is general information, not financial or legal advice.