What You Need to Know About Interest Rate Locks


When taking out a mortgage for a new home, one of the most important aspects to the loan is the interest rate. The interest rate you receive for your mortgage will determine how much money you pay over time for your home. Interest rates are determined by a variety of factors including loan amount, credit score, and loan term.

What is a rate lock?

               A rate lock is a set interest rate on a loan for a specific loan amount and time. A rate lock can be guaranteed for 30, 45, or 60 days. If the loan is not completed before the end of the rate lock, the lender may or may not extend the lock for the buyer. Depending on the lender, rate locks may cost money in the form of a flat fee or a percentage of the mortgage.

Why lock your interest rate?

               Locking an interest rate is beneficial to home buyers because their interest rate for their mortgage is guaranteed and will not change even if interest rates rise during the home buying process. Locking an interest rate also runs the risk of having interest rates go down after locking, however working with an experienced broker will improve the chances of locking at a competitive rate.

When is the best time to lock?

               There is no guaranteed best time to lock an interest rate. Rates can change daily. Data suggests that rates are more stable on Monday rather than later in the week, however, there are many other factors that play into the best time to lock. The wisest thing to do is to work with an experienced broker who has the knowledge and history of your chosen lender to know when is best to lock your loan.

Solid Rock Home Loans has over 20 years of experience in Hawai’i’s mortgage industry. If you have any questions about rate locks, mortgages, or purchasing a home, we are more than happy to help. Please contact us below:

Ed Smith

Sr. Loan Officer

Solid Rock Home Loans, Inc.


Cell 808-255-7498

eFax 866-780-8558