Should I Lock My Interest Rate When Buying a Home in San Diego?

What Is a Rate Lock?

A mortgage rate lock is a commitment from your lender to hold a specific interest rate for a defined period — typically 30, 45, or 60 days — regardless of what happens to market rates during that window. If rates rise after you lock, you are protected. If rates fall, you may be stuck with the locked rate unless your loan includes a float-down option.

When Should You Lock Your Rate?

• After your offer has been accepted and you are in contract — you now have a specific closing date
• When you believe rates may rise during your escrow period
• When your lender offers a float-down option providing both protection and upside
• Avoid locking before you are in contract — if the deal falls through, the lock may be wasted

How Long Does a Rate Lock Last?

Standard rate locks in San Diego are 30, 45, or 60 days. A 30-day lock suffices if your close of escrow is within that window. For VA or FHA loans that may take 30 to 45 days to process, a 45 to 60-day lock is safer. Longer locks typically cost more — lenders charge for extended lock periods.

What Happens If the Lock Expires?

If your escrow is delayed beyond your lock period, you may need to extend the lock at additional cost or accept the current market rate. Escrow delays caused by the lender typically result in them honoring the original rate, but buyer or seller-caused delays may result in extension fees.

Float-Down Options

Some lenders offer a float-down provision allowing you to take advantage of rate decreases during your lock period — typically requiring rates to drop by at least 0.125 to 0.25 percent. Float-down options may carry a small additional cost but provide valuable flexibility in a volatile rate environment. Ask your lender about this option upfront.

Related Reading on RiederHomes.com:

→ Blog #7: Understanding Interest Rates

→ Blog #2: Mortgage Pre-Approval

→ Blog #9: APR Explained

→ Blog #16: Mortgage Points

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556