What is Lock Period?
A lock period is the timeframe during which a lender guarantees a specific interest rate and points for your mortgage, protecting you from market fluctuations until closing.
A lock period is the length of time a lender agrees to hold a specific interest rate and discount points for your mortgage. It typically ranges from thirty to sixty days, but can be longer. Borrowers lock their rate to avoid increases before closing. If the lock expires before closing, you may lose the rate or pay a fee to extend it. Watch for lock periods that are too short for your closing timeline, and ask about float-down options if rates drop. Also, note that a lock is not a guarantee of final approval; your loan still must close according to the terms.
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