What is a rate lock period?



What is a rate lock period?

This is called a rate lock period. Most lenders will lock a rate for 30 days with no fee. Longer locks may incur an extended lock fee because they require your lender to use more time and resources in protecting your rate. Your rate is ready to be locked after you get pre-approved for a mortgage and reach an agreement to purchase your new home.

How do I lock a rate on my mortgage loan?

Your mortgage lender will probably offer a rate lock after your initial loan application has been approved and before it’s submitted for underwriting, though rate lock policies vary by lender. If a loan advisor doesn’t mention a rate lock, you can simply ask for one.

What is an extended lock fee on a mortgage?

Longer locks may incur an extended lock fee because they require your lender to use more time and resources in protecting your rate. Your rate is ready to be locked after you get pre-approved for a mortgage and reach an agreement to purchase your new home.

How long do lenders lock in mortgage rates?

When you’re shopping for a home or are looking to refinance an existing home loan, be aware that lenders set their own terms for how long they will lock in a mortgage rate and what they charge if more time is needed. Rate locks for a traditional 30-year mortgage typically last 30 or 45 days, though some lenders will go up to 60 days.