Refinance Rate Lock Explained
Refinance rates change every business day with the bond market. Here is what drives refinance rate lock explained and how to position yourself.
What to know
A rate lock freezes your quoted refinance rate for a set period, commonly 30 to 60 days, so market swings during processing don't change your deal. Longer locks cost a bit more. If rates drop before you close, ask whether your lender offers a one-time float-down for a fee.
What affects your refinance rate
- Your credit score and loan-to-value
- Loan term (15-year prices below 30-year)
- Rate-and-term vs cash-out (cash-out prices higher)
- Discount points you choose to buy
- The bond market and Fed policy — and lender margins, so compare quotes
Example payment by rate
| Rate | P&I on a $300,000 loan (30-yr) |
|---|---|
| 5.25% | $1,657 |
| 5.50% | $1,703 |
| 5.75% | $1,751 |
| 6.00% | $1,799 |
| 6.25% | $1,847 |
| 6.50% | $1,896 |
| 6.75% | $1,946 |
Rates move daily. Join the free Refi Rate Guide alerts so you can lock when rates clear your break-even.
Lower Your Payment — Free Alerts
Refinance rates move daily and the right dip can save hundreds a month. We will tell you the moment it makes sense.
Frequently Asked Questions
- Refinance Rate Lock Explained — the quick answer?
- A rate lock freezes your quoted refinance rate for a set period, commonly 30 to 60 days, so market swings during processing don't change your deal. Longer locks cost a bit more. If rates drop before you close, ask whether your lender offers a one-time float-down for a fee.
- Are refinance rates higher than purchase rates?
- Rate-and-term refinance rates are usually similar to purchase rates; cash-out refinances price a bit higher because they are riskier for the lender.