time. The lender guarantees (with a few exceptions) that the mortgage rate offered to a borrower will remain available to that borrower for a specific amount of time.” This way, the borrower — which is you, as the buyer — won’t have to worry if rates do go up, which is a very real possibility, in between the time you and your agent present an offer and when you close on the home. How long do mortgage rate locks last? Typically, they last anywhere from 30 to 60 days, but they can also last up to 120— and sometimes even longer. Sometimes, you can find a lender who will offer a rate lock for an agreed-upon length of time for free, but often they will charge if you request an extension of the lock. Also, many lenders operate within a tiered system. For example, in general, rate locks of 30 days or less are usually free; some lenders offer free rate locks up to 45 days. Generally, after 45 days, the rate lock will start to cost you in incrementally higher fees, often in 30-day increments. Further, it’s common for each 30-day extension to also cost a quarter-point in additional fees, although specific fees can vary significantly from one lender to the next. KNOWWHEN TO LOCK IN A RATE So how do you know exactly when to lock in a mortgage rate? First, you should know that you can’t lock in a mortgage rate until after you’ve been approved for a loan. This is another reason that getting pre-approved for a loan is so important. As many home buyers do, you might decide to wait to lock in a rate until you’ve found a home you’d like to purchase and put in an offer for. This is often recommended—wait until you’ve found a home that interests you, and that meets all of your needs and most
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