Quick Answer: A mortgage rate lock guarantees your interest rate for a set period — typically 30, 45, or 60 days — while your loan is being processed. In Utah, you can usually lock your rate after you're under contract on a home. If rates go up during the lock period, you keep the lower locked rate. If rates drop significantly, some lenders offer a one-time float-down option. Rate locks are free for standard periods (30-45 days), but extended locks (60-90 days) may cost 0.125-0.25% of the loan amount.
When to Lock Your Rate in Utah
The best time to lock depends on your timeline:
- Under contract on a home: Lock as soon as your offer is accepted if you're happy with the current rate
- Pre-approval stage: Some lenders offer rate locks during pre-approval, but these are less common and may cost more
- New construction: Extended locks (90-180 days) are available for homes under construction, though they cost more
Rate Lock Periods and Costs
| Lock Period | Typical Cost | Best For |
|---|---|---|
| 30 days | Free / included | Resale purchases closing quickly |
| 45 days | Free / included | Standard purchases |
| 60 days | 0.125% of loan | Purchases needing extra time |
| 90+ days | 0.25%+ of loan | New construction |
What If Rates Drop After I Lock?
If rates drop significantly after you lock, you have a few options:
- Float-down option: Some lenders allow a one-time re-lock at the lower rate (usually costs 0.125-0.25%)
- Renegotiate: If rates drop substantially (0.5%+), your lender may work with you rather than lose the loan
- Close and refinance later: If rates drop after closing, you can refinance — though this involves new closing costs
Ready to Get Started?
Get a personalized pre-approval or schedule a free consultation with Felix Vivanco.
Felix Vivanco
Senior Mortgage Loan Officer | NMLS #2002977
Felix has helped hundreds of Utah families find the right mortgage. Bilingual in English and Spanish. Based in Lehi, serving all of Utah.