What is a rate lock?

It can take a long time to go through the process of getting mortgage quotes, applying for a loan and finally getting a loan approval. During this time, the cost of your mortgage will fluctuate, potentially affecting whether you can afford the loan. A rate lock is insurance that the interest rate and points that you were quoted will still be valid for a set period of time.

This lock-in period is usually set between 15 and 90 days. Should your lock expire before the loan has closed, you will have to accept the terms of your lender under the current market conditions or find another lender.

Get it in writing

While some lenders will provide you with a form detailing the specifics of the lock, others may do so only verbally. If it is not provided to y