Rate lock
A lender's promise to hold a specific interest rate for a set number of days while the loan is processed. If rates rise before closing, the locked rate stands.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
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See how it worksWhere this comes up: under contract
Part 1 of 4
Why a seller cares
The buyer's rate lock has an expiration date, and a closing that slips past it can cost the buyer money or their approval. It is one reason buyers resist moving the closing date late.
Part 2 of 4
A simple example
The buyer locked 6.5% for 45 days. Closing slips a week past the lock, and rates have risen to 6.9%.
| What happens | What the buyer faces |
|---|---|
| Closing inside the lock | 6.5%, as promised |
| Closing a week after it expires | An extension fee, or the new rate |
| The new rate pushes their DTI over the line | A loan that no longer approves, and a deal at risk |
A rate lock is a deadline the buyer is carrying. A seller who knows it can plan around it.
Part 3 of 4
What people get wrong
That a delay only inconveniences the buyer. Past the lock it can change the loan, and the loan is what closes your sale.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines rate lock in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.