U.S. Mortgage Index

Rate lock

Also called Lock-in

Definition

A rate lock, also called a lock-in, is an agreement that the offered interest rate will not change between the lock and closing if the loan closes in the stated time frame and the application does not change.

In plain English

Mortgage prices can move while a file is in process. A rate lock is the lender’s written promise to hold a stated rate—and often points—for a stated period. If the application changes, or if closing misses the lock period, the locked price can change or expire. This page does not name typical lengths or extension fees.

Technical definition

CFPB’s official Ask CFPB page defines a lock-in or rate lock as a promise the rate will not change between offer and closing if the borrower closes in the specified time frame and the application does not change. The Loan Estimate shows whether the rate is locked.

Why it matters

A Loan Estimate that is not locked is not a promise about tomorrow’s rate.

Example

Jordan locks a rate while the appraisal is pending. If the file closes inside the stated lock period and the application is unchanged, that locked rate is the one the lock covers. A later change in loan amount can reopen pricing.

Sources reviewed

Important note

A rate lock is not a guarantee that the loan will close, and it does not freeze every fee on the disclosure.