01
Lock when the deal is real.
Once you're under contract with an inspection-cleared house, the loss curve from a rate uptick beats the small upside of floating. Lock at acceptance unless you have a strong reason not to.
Rate Lock · the one-way door
Lock the rate.
Or don't. Strategically.
A rate lock is the lender promising you a rate for X days. It's a one-way door — you can't un-lock without paying. Here's the discipline: when to lock, when to float, what a float-down actually costs, and how to read your real lock window.
· The four rules
Four rules
that save you basis points.
02
Float when you're 30+ days out.
Long lock periods cost more (the lender prices in time risk). If your closing is genuinely 45-60 days off, a short float can save BPS. But it requires watching.
03
Float-down only if the cost makes sense.
Lender fee for a one-time float-down is typically 0.25–0.5% of loan. On $300K, that's $750–$1,500. Worth it if rates drop 0.25%+. Otherwise it's an option premium you don't need.
04
Know your lock window.
15 / 30 / 45 / 60-day locks have different prices. Match the window to your timeline. Asking for 45 when you'll close in 22 wastes basis points.
· The market reads
Three rate environments.
Three strategies.
Rates rising
Lock at acceptance. Every 0.125% up = ~$25/mo on a $300K loan. Don't gamble.
Rates flat
Lock when comfortable. The cost of certainty is small; the cost of a surprise upward move is real.
Rates falling
Float strategically. Set a target with your LO ('lock me at 6.25% or by day 30, whichever first'). Many LOs will honor that.
· Watch-outs
Four pitfalls
that burn buyers.
Pitfall 01
Locking too long.
60-day lock when you'll close in 22 = paying for time risk you don't need. Match the window.
Pitfall 02
Re-locking after a float-down without negotiating.
Lenders quote retail. Always ask: 'What's the BPS cost to float down?' If it's >0.5%, walk to a better LO.
Pitfall 03
Forgetting locks expire.
Lock past expiration = re-pricing at current rates. If your closing slips, your LO must extend (often a small fee) before the lock dies.
Pitfall 04
Listening to a rate prediction more than your timeline.
Nobody knows where rates go. Your timeline IS knowable. Build the strategy around what you can control.
One strategy.
Built around your timeline.
Five minutes. We map your real timeline + risk tolerance and recommend a lock window — not a salesperson's default.