Mortgage Rate Lock | How do rate locks work?

Interest rates can change daily. A rate lock secures your interest rate for a set period, protecting you if rates go up. This lets you know your exact loan cost before closing.

What is an interest rate lock? 

A rate lock is an agreement between you and a mortgage lender.  The lender guarantees your interest rate and fees for a set time.  You agree to move forward and close before the lock expires.

How long can you lock in an interest rate?

A rate lock period is the number of days your interest rate stays protected. It starts on the lock date and ends on the expiration date.

Lock options vary by lender.  At NewCastle Home Loans, we offer 30-, 45-, and 60-day rate locks.

Your lock must last through closing.  Closing is the day you sign the final paperwork and transfer funds and ownership.

Most closings happen 30 to 45 days after the seller accepts your offer.  If your contract allows 30 days to close, choose a lock of at least 30 days.

Your lock should expire after your closing date, not before it.

Longer lock periods usually cost more.  A 60-day lock often has a slightly higher rate or fee than a 30- or 45-day lock.

Do lenders charge a rate lock fee?

Most lenders do not charge a fee to lock your rate.

Some lenders do require a one-time, non-refundable fee at lock.  This fee protects the lender if you switch to another lender for a lower rate.

Always ask about rate lock fees upfront.  Include all costs when comparing loan options.

NewCastle Home Loans does not charge a rate lock fee.  You can shop rates and protect your options without penalty.

When should I lock in my interest rate?

Lock your interest rate soon after you go under contract. 

Under contract means the seller accepted your offer, and both parties signed the sales contract.

At that point, lenders have what they need to lock your rate.  This includes the property address, purchase price, loan amount, and closing date.

Timing matters, but predicting rates is impossible.  Rates can move up or down without warning.

Locking early protects your payment and removes uncertainty while you move toward closing.

How do I lock the mortgage interest rate?

You must ask the lender to lock your rate.  Lenders do not lock rates automatically.

Here’s how the process usually works:

1. Contact your lender
   Once you have a signed purchase contract, ask for the current rate and fees.
2. Review the terms
   Your lender will show available rates and lock options.
   Request an official Loan Estimate to compare offers.
3. Request the rate lock
   Tell your loan officer to lock the rate you choose.
   The lender confirms the lock by issuing a Loan Estimate and a rate lock agreement.

Ask for email confirmation right away.  Review the documents and ask questions if anything is unclear.

How do I know my rate is locked?

Never assume your rate is locked.  You must verify it in writing.

Your Loan Estimate and rate lock agreement show clear proof of a locked rate.  Review three specific places to confirm your rate, dates, and fees. 

Here’s exactly where to look and what to check.

Step 1: Page One of the Loan Estimate

Confirm the interest rate is locked.  Make sure the lock expiration date is after your closing date.

Step 2: Page Two, Section A – Origination Charges

Review the Origination Charges in the Loan Costs column on the left.  These are fees you pay directly to the lender at closing.

Step 3: Rate Lock Agreement

Confirm three items:

• Interest rate
• Lock expiration date
• Estimated closing date

At NewCastle Home Loans, we confirm your rate lock instantly.  You never have to worry about mistakes or surprises.

What if I lock in a rate and it goes down?

If rates drop after you lock, you may still have options.  Some lenders allow a rate renegotiation or a float-down. This depends on your lock-in terms and your lender's policy.

A rate lock works both ways.  You agree to the lender’s terms.  The lender agrees not to change your rate, payment, or fees.

That certainty feels good.  You know your payment, and you’re protected if rates rise.

But if rates fall, wanting a lower rate is reasonable.  A lower rate can save you thousands over time.

Start by asking your loan officer for a lower rate.  Some lenders will adjust the rate to keep your business.

If they say no, compare your options.  Decide if switching lenders makes sense based on the savings.

You can view today’s rates and fees on our website in real time.  Check if we can offer you a better deal.