Locking your loan is an importnat part of the discussion of your loan which should be discussed on day 1.

When you finally do lock, the loan officer should make it very clear that you are locked and what is your final rate is. Also, what is your "rate lock period" and your lock expiration date?

A rate lock or a rate commitment is a lender's promise to hold a certain interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from going through your whole application process and at the end of it finding out the interest rate has gone up.

A rate lock period can vary in length, and longer ones usually cost more in the form of a higher interest rate. A lender will agree to "hold" your interest rate and points for a longer period, say 60 days, but in exchange the rate the pricing is slitely worse due to the uncertainty of a longer time

In today's mortgage environment with trends in our favor most of the time I favor floating to take advantage of a short term lock at the end of the process and much better pricing. Mortgage Rates have minor fluctuations that should be watched at all times.

    When purchasing it is wise to pick a rate lock slitely longer than the contract period in case there is a hold up. Also, every lender has a different rate lock policy and they have a different extension policy. Some are less expensive, some may revert to the prevailing market rate. This is the job of your mortgage consultant to be on top of this.

    When refinancing it may be wise to look at a short term interest rate lock because you are already in the home. Intrest rate locks come in different time frames. I have seen 7 day locks, 15 day locks, 21 day locks, 30 day locks, 45 day locks, 60 day locks, 90 day locks, 120 day locks, 180 day locks and 360 day locks. A 360 day lock is commonly used with a construction perm loan. Typically these loans offer a one time free floatdown opportunity.