Rate Locks: How They Work and When to Lock in Arkansas

What a rate lock is

A rate lock is a written commitment from a lender to honor a specific interest rate for a defined period — typically 30, 45, 60, or 90 days.

When to lock

When you have an accepted purchase contract with a defined closing date, you should lock. The lock horizon should exceed your expected closing timeline by 7-14 days.

Lock terms

Longer locks cost slightly more (higher rate or fee). 30-day locks are typically the cheapest; 60-day and beyond add incremental cost.

Float-down options

Some lenders offer float-down provisions — if rates drop significantly before closing, you can relock at the lower rate once. These cost extra but are worth asking about in volatile markets.

What happens if you don’t close in time

Extensions are possible (usually at cost). If the lock expires, you relock at current market pricing. In a rising-rate environment, this can be expensive — which is why lock horizon planning matters.