From the RatesQ team · Sample question

Should I lock my mortgage rate now or wait?

This educational scenario and its sample explanations are not posts from real users.

I'm under contract with about 35 days to close. The rate I was quoted is 7.0%. My LO is telling me to lock now but my gut says rates might come down. Is there any data or strategy for deciding when to lock?

Quick Summary

  1. A rate lock applies for the period and terms in the written agreement.
  2. Floating leaves the rate subject to market changes until a lock is agreed.
  3. Check expiration dates, extension charges and any float-down terms.

Sample explanations

From the RatesQ team

Honestly nobody knows where rates go in 35 days, not even the Fed. The question to ask yourself is: can I comfortably afford the loan at today's rate? If yes, locking eliminates the risk of rates going higher before closing. If rates drop after you lock, you lose the savings — but you also avoid any nasty surprises. Most people under contract lock.

From the RatesQ team

Your LO isn't wrong to suggest locking. On a 30-day or 45-day purchase lock, the cost is usually already baked into the pricing — you're not paying extra. The float-down option (ability to lower your locked rate if rates drop) is a separate product some lenders offer, usually for a fee of 0.1–0.5% of the loan amount. Whether it's worth it depends on how much you expect rates to drop and the probability. Given current volatility I'd lock and close without the extra complexity, but ask your LO specifically what a float-down would cost vs. what a 0.25% rate drop would save you monthly.

From the RatesQ team

I waited to lock on my purchase in 2023 thinking rates would drop. They went up another 0.375% before my closing. Locked at the peak. Won't make that mistake again.