Most lenders offer 30, 45, or 60-day locks. Longer locks cost more — either through a higher rate or an explicit fee (typically 0.125-0.25% of loan amount per 15 days beyond 30).
Lock for longer than you think you need. The average mortgage takes 30-45 days to close from application. But underwriting delays, title issues, and appraisal problems are common. I watched more locks expire than I can count — and extensions cost money or require re-pricing.
Floating makes sense only when rates are trending meaningfully downward AND you have financial flexibility. If a 0.25% rate increase would kill your affordability, lock immediately. The upside of floating rarely justifies the risk for most buyers.
Two options: extend (usually costs 0.25-0.375 points) or re-lock at current market rates. If rates rose while you were in underwriting, you pay the higher rate. If rates fell, some lenders offer "float-down" provisions — but read the fine print.
Some lenders offer float-down locks: you're protected if rates rise, but you can lock at a lower rate if the market drops by a minimum amount (usually 0.25-0.5%). These cost 0.5-1 point but can be worth it in volatile markets.
For most buyers in a purchase transaction: lock for 45-60 days at closing. The cost difference is minimal and the protection is significant. For refinances with flexible timelines: floating for 2-3 weeks to watch trends is reasonable if you're not rate-dependent.
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🏦 Ask Zai Free → 🔍 Decode Denial LetterNot financial advice. Educational content based on 23 years of mortgage industry experience.