What a rate lock does
A lock freezes your interest rate for a set number of days — commonly 30, 45, or 60 — while your loan is processed. Longer locks cost more, either in fee or in rate, because the lender is carrying more risk.
Match the lock period to a realistic closing timeline. Locking for 30 days on a transaction that needs 45 means paying for an extension.
The break-even math on points
One point costs 1% of the loan amount and buys down your rate by some fraction of a percent. Divide the cost of the points by the monthly payment savings and you get the break-even month.
On a $500,000 loan, a point costs $5,000. If it saves $130 a month, you break even at about 38 months. Hold the loan longer than that and points win; sell or refinance sooner and they do not.
When points are usually the wrong move
If cash to close is tight, if you expect to refinance when rates move, if you are likely to move within a few years, or if the same money would be better used to reduce your loan-to-value into a better pricing tier. I will run both versions side by side before you decide.
Questions people ask
What if rates drop after I lock?+
Some lenders offer a one-time float-down option under certain conditions. Ask before locking — it is not automatic.
Is a quoted rate a real rate?+
Only when it is locked and tied to your actual credit, property, loan amount, and closing date. Advertised rates usually assume ideal conditions.