Last updated: November 2025
Quick Answer
Locking your mortgage rate now makes sense if you’re near closing or satisfied with your current offer. Waiting for lower rates may pay off, but it comes with risk. Your decision depends on your loan timeline, risk tolerance, and how current market trends are moving.
Don’t leave your rate to chance. See how GO Mortgage helps you lock smarter.
What does it mean to lock a mortgage rate?
Locking your mortgage rate means securing the interest rate offered by your lender for a specific period, typically 30, 45, or 60 days. During this period, your rate won’t change, even if market rates rise.
Rate locks protect borrowers from interest rate volatility while they complete the loan process.
If you don’t lock and rates rise, your monthly payment may increase. If rates fall, you may miss out on savings unless your lender offers a float-down option.
The key decision is whether to accept today’s rate or gamble that the market will offer a better deal before you close.
Factors to consider when deciding to lock or wait
| Factor | Lock Now | Wait for Drop |
|---|---|---|
| Closing date is approaching | Yes, lock to avoid late surprises | Risk of rate jump before closing |
| Market is highly volatile | Lock to minimize risk | Unpredictable short-term movements |
| Long time before closing | Waiting may be reasonable | May benefit from future rate cuts |
| You’re risk-averse | Lock gives peace of mind | Waiting introduces uncertainty |
| You expect Fed rate cuts | Lock might miss future savings | Possible lower rates ahead |
Weigh these factors based on your timeline, loan type, and how much risk you’re willing to accept.
How long can you lock a rate?
Most lenders offer rate lock periods of:
- 30 day
- 45 days
- 60 days
- Some offer longer terms, often with added cost
The length you choose depends on your projected closing date. Longer rate locks offer more time but typically come with slightly higher fees or interest rates.
If your lock expires before closing, your lender may allow a re-lock or extension, but this could alter your terms or pricing.
What happens if rates fall after you lock?
If mortgage rates drop after you lock, you usually won’t benefit unless your lender offers a float-down clause. This provision lets you take advantage of a lower market rate once during the lock period.
Float-downs often require:
- A documented rate improvement (e.g., 0.25% or more)
- Formal request before closing
- A one-time execution
Check with your lender to see if your rate lock includes this option, as it provides a good hedge if you’re locking in a volatile market.
When locking your rate is the safer choice
You should strongly consider locking your rate if:
- You’re under contract to buy a home and closing soon
- Market conditions are unstable
- The Fed is signaling uncertainty or potential rate hikes
- Your monthly budget depends on the current quoted rate
A lock gives you predictability and removes the guesswork when interest rates can shift significantly over a few weeks.
When it might make sense to wait
Waiting to lock could make sense if:
- You’re early in the loan process
- Current rates feel high compared to historical trends
- You expect the Federal Reserve to lower rates soon
- You’re flexible on timing or refinancing later
Still, this is a calculated risk. If rates rise instead of falling, you may lose buying power or end up with a higher payment.
Example: Locking now vs. waiting
| Scenario | Locked Rate (6.5%) | Waited, Rates Fell (6.0%) | Waited, Rates Rose (7.0%) |
|---|---|---|---|
| Loan Amount | $350,000 | $350,000 | $350,000 |
| Monthly Payment (Principal/Interest) | ~$2,212 | ~$2,098 | ~$2,329 |
As this example shows, waiting could save you over $100/month—or cost you even more. The challenge is predicting the direction of rates during your loan process.
Questions to ask your lender before deciding
- How long can I lock my rate?
- What’s the cost of extending the lock period?
- Do you offer a float-down option?
- What happens if I don’t close in time?
- Can I re-lock later if I choose to wait now?
Clear answers help you make an informed decision and avoid surprises as you approach closing.
Locking protects your rate—waiting invites risk
In today’s uncertain market, deciding whether to lock your mortgage rate or wait depends on timing, financial goals, and your comfort with risk. If you’re nearing closing, locking now can protect your payment and provide peace of mind. If you have time and expect rates to drop, waiting may pay off, but be prepared for the opposite.
Need help choosing the right path?
Talk to GO Mortgage today to explore rate lock strategies that fit your timeline and goals.
FAQ: Should you lock your mortgage rate now
A: Lock if your closing is approaching or you want payment certainty. Wait if you have time and expect lower rates, but understand the risk of rising rates.
A: Usually not. Unless your lock includes a float-down clause, you’re committed to the locked rate through the expiration date.
A: No. Some offer them as part of a premium rate lock or under certain conditions. Always ask about this before locking.
A: Both are affected, but buyers typically face firmer deadlines, making rate locks more urgent during purchases.
A: Extension costs vary by lender but are often based on loan amount and number of days added. These fees can affect your closing costs.