You can lock a rate anytime after we receive and review your signed loan application, you pay your application fee and you have identified a property. The typical lock-in period is 45 days. This means that once you lock in the rate, you must close your loan within 45 days. Once you lock, you cannot unlock. If you think rates may fall, don't lock and instead float your rate. If you are unsure or adverse to risk, it might be better to lock your rate.

These terms are mortgage loan terms for "are you a gambler?" When you make application you will be asked to make the decision if you want the rate offered at that time? that is, the lock rate? or gamble on whether the future will offer lower rates? that is, the float rate. If you lock your loan and rates increase, you are protected. Once you lock, if rates decrease, you will not get the lower interest rates. If you think rates are going lower and you don't mind the risk, you would want to float.

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock."

Mortgage interest rates fluctuate daily so no one can know for certain whether they'll go up or down. If you have a hunch that rates are on an upward trend, then you'll want to consider locking in your rate as soon as you are able. Before you lock make sure that your loan will close within the lock period. It is always a good idea to discuss rate locks with your loan officer who is also an excellent resource for rate information.

Locking-in” a rate is a process in which a lender guarantees a borrower a specific rate for a certain period of time, even if rates fluctuate during that period. At Gershman Mortgage, you can “lock-in” a rate for up to 270 days. When “floating” a rate, the borrower chooses to allow their rate to fluctuate with the market from the time of the application until the closing.

Mortgage interest rate movements are as hard to predict as the stock market and no one can really know for certain whether they'll go up or down. If you have a hunch that rates are on an upward trend then you'll want to consider locking the rate as soon as you are able. Before you decide to lock, make sure that your loan can close within the lock in period. It won't do any good to lock your rate if you can't close during the rate lock period.

A. We recommend watching the market and consult with your Loan Officer. Please note that a lock can not be changed once you select your product and rate, so we ask that you be certain of your request.

Once you have completed a loan application and have chosen a property, you can lock in your interest rate. Usually rates are locked in on a 45- and 60-day basis. You should check with your First Republic loan officer for other options.