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Rate locks and float-downs: protecting your rate before closing

October 5, 20262 min readHelloLend Team

Once you're under contract, the rate you were quoted isn't yours until you lock it. A rate lock is a lender's commitment to honor a specific rate for a set period, commonly 30, 45 or 60 days, provided the loan closes inside that window.

Rate lock and float-down side by side
Rate lockFloat-down option
What it doesHolds a set rate for 30, 45 or 60 daysLets you capture a lower rate after you lock
What it costsMore for longer locksCharged upfront or built into the rate
The conditionThe loan closes inside the windowUsually a 0.25% or larger improvement, typically once
Most useful forA realistic closing dateLong locks and new construction

If closing slips past expiration, an extension is usually available for a fee.

How a lock works

  • Longer lock periods cost more, priced into the rate or charged upfront, because the lender carries the risk for longer
  • A lock attaches to a specific loan file, so changing the loan amount, property or program can mean re-locking at current pricing
  • If closing slips past expiration, an extension is usually available for a fee
  • Letting a lock expire means re-pricing at market, which may land better or worse than where you started

Where a float-down fits

  • A float-down lets you capture a lower rate if the market improves after you lock, typically once and within defined limits
  • It generally requires a minimum rate improvement, often 0.25% or more, before you can use it
  • Lenders charge for the option, either upfront or built into the rate
  • It's most valuable on long locks and new construction, where the closing date sits far out and markets have time to move

The right lock length is the one that matches your realistic closing date, not your optimistic one.

Extension fees frequently cost more than the slightly higher rate on a longer lock would have. Walk through your timeline with your loan officer before locking, not after.

Published October 5, 2026 by the HelloLend Team. General information, not legal or financial advice. Talk to your loan officer about your own loan. This is not a commitment to lend or extend credit.

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Not sure how long to lock?

A loan officer can match a lock period to your contract timeline and tell you whether a float-down is worth paying for on your loan. Pre-qualifying will not affect your credit score.

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