Rate lock
Also called: lock, locking your rate, float
A lender’s commitment to hold a quoted interest rate for a set number of days while your loan is processed.
Locking protects you from rate movement between application and closing, for a defined period. Letting the rate float leaves you exposed to the market in both directions.
If a lock expires before closing, an extension usually has a cost. If rates fall meaningfully after you lock, whether you can capture that depends on the lender’s written float-down policy, which is a specific product feature, not a courtesy.
Related terms
- Interest rate (note rate)The percentage charged on your loan balance, the number your principal and interest payment is calculated from.
- Discount pointsAn optional upfront fee paid to the lender in exchange for a permanently lower interest rate.
- UnderwritingThe lender’s review of your credit, income, assets, and the property to decide whether the loan can be made.
Go deeper
More in Mortgage & lending
Have a question about your own situation?
Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures