What is Rate Lock?
A rate lock is a lender’s guarantee to hold a specific interest rate for a set number of days while your loan is processed, protecting you if market rates rise before closing. If the lock expires before you close, you may have to re-lock at current rates. Locks commonly run 30 to 60 days.
Example: A buyer locks 6.5% for 45 days. Even though market rates climb to 6.9% before closing, the buyer still gets 6.5%.