In a purchase deciding when to lock needs to take in to account the expected closing date. So, if your target closing date is 30 days from the signing of the contract you may want to lock for 45 or 60 days to protect against unanticipated delays by the seller or you or perhaps the lender. Each lender sets mortgage rates once each weekday morning . In a volatile market the rates can change after they have been posted on a given day. This is referred to as an intraday change. Once locked, the loan’s interest rate won’t change barring any changes to your application details. You are protected from increases in rates, and the lender is protected from having to move to a lower rate, unless they offer the option for a one-time "float down." Each lender has their own rate and lock roadmap. Your loan officer will review the entire process with you so that you can make an informed decision about how and to lock your loan. Your loan officer is not permitted to suggest that any time is a right or wrong time to lock. The LO is responsible to provide and explain all of the information that you need to make an informed independent decision. Your loan officer will explain the rates available based on the components of your profile such as loan amount, FICO score, Loan-to-Value, term of rate lock, etc. You will be made aware if the loan that you are considering has a “float down” feature. The float down is a mechanism (usually for a fee) of lowering your locked in rate should the market rate go down before your closing date. Your loan officer will also explain your lender's policy regarding rate lock extensions should your rate lock expire before the loan can close.
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