When and how does one "lock in" a mortgage rate during the home buying process?

Question

When and how does one "lock in" a mortgage rate during the home buying process?

Answer 1

YOu lock in the interest rate when you have an accepted purchase contract and you notify the lender that you have decided to use them for your loan.  You get a free lock for 30 days.  Some lenders offer 60 days so you can be more flexible.  It's part of your shopping to learn who offers what.

It is possible to lock in today's rate for a fee.  A lender will guarantee to keep today's rate for 120 days for an upfront fee of $1,800.   Seems like a lot of money; that's why no one does it.  But if rates jump up, you will wish you paid the money.

Answer 2

You lock it with the lender.  Ask your lender.

Answer 3

Once they quote you the rate they will usually ask you if you want to lock in the rate.  Sometimes they will charge you an upfront fee to lock the rate.  This has been my experience with Countrywide and other big banks.

Answer 4

Locks vary by lender. Some have 'float down' options allowing you to lock and then relock if the market improves. Ask your lender about this. As a broker, I often lock my clients with one lender as a hedge against market movement. If the market improves, I submit the file to another of my lenders at the better pricing.