Shorter Locks (e.g., 15-45 days): Typically have lower (or no) direct fees or slightly better interest rates. Suitable if you are very close to closing and confident it will happen within the lock period. Risk: If closing is delayed beyond the lock, you might have to pay an extension fee or relock at potentially higher market rates.
Longer Locks (e.g., 60-120+ days): May come with a higher interest rate or a direct upfront fee. Provide more certainty if you anticipate a longer closing process (e.g., new construction) or if you are concerned about rising interest rates. Cost: You pay a premium for this extended protection.
"Float Down" Option: Some lenders offer a float-down option, allowing you to lock your rate but then take advantage of a lower rate if market rates decrease before closing (often for a fee, or with specific conditions). Ask your lender if this is available.
The decision depends on your risk tolerance for rate changes, the cost of the lock, and the likelihood of closing within the chosen lock period.
