Interest rates can change daily. Here’s how to protect your rate—and your budget—before it’s too late.
In 2025, mortgage interest rates remain sensitive to economic shifts, inflation reports, and Federal Reserve policy. For borrowers, this volatility can create uncertainty during the loan process—but it doesn’t have to. A mortgage rate lock gives you control and predictability, protecting your rate from future increases once your application is underway.Whether you’re buying or refinancing, knowing when and how to lock in your rate can save you thousands over the life of your loan.
What Is a Mortgage Rate Lock?
A rate lock is a lender’s commitment to honor a specific interest rate for a set period—typically 15, 30, 45, or 60 days—while your loan is processed. This protects you from rate increases before closing.
When Should You Lock Your Rate?
- Once you have a signed purchase agreement (for buyers)
- After choosing your loan type and terms
- When you’re satisfied with your current rate and want to avoid future market risk
Factors to Consider Before Locking
- Market conditions: Is the trend upward or stable?
- Timeline: Will your loan close within the lock period?
- Risk tolerance: Are you comfortable watching rates fluctuate?
What Happens If Rates Drop After You Lock?
Some lenders offer a “float-down” option that allows you to secure a lower rate if the market improves. Be sure to ask your lender if this is available and under what conditions.
What If You Don’t Lock
If you choose not to lock, your rate will be set at closing—and could be higher than expected if the market moves. This introduces more risk into your loan process and monthly budgeting.
Pro Tip: Even a 0.25% increase in your interest rate can significantly raise your monthly payment and total interest paid. Locking your rate is a powerful tool to preserve affordability—especially in uncertain markets.
Not sure when to lock your rate? We’ll help you monitor the market and time your lock strategically based on your goals, timeline, and risk profile.
Contact our Sales team for a personalized rate lock strategy.
📞 855-LOANWORKS (855.562.6769)
✉️ Sales@LoanWorks.ai
Disclosures: LoanWorks, Inc. is a mortgage broker licensed in multiple states. All information provided on this blog is for general informational purposes only and does not constitute an offer to lend or a commitment to approve any loan. Loan terms, rates, and eligibility are subject to change without notice and may vary based on creditworthiness, property type, and other factors. Not all applicants will qualify.LoanWorks, Inc. does not guarantee approval, rate, or term and does not make any express or implied claims about the availability of specific programs or products.
By refinancing an existing loan, total finance charges may be higher over the life of the loan. Always consult with a licensed LoanWorks representative for details specific to your financial situation.
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