If rates drop after I lock, do I get the lower rate automatically?

Do I get lower rates automatically if they drop after I lock?

You want to know if you'll automatically get a lower rate if mortgage rates drop after you lock your rate. Rate locks work one way—they protect you from rates going up, but you don't automatically get lower rates if they drop.

A rate lock guarantees the locked rate for a specific period, typically 30 to 60 days. The lender honors that rate even if market rates rise. However, if rates fall below your locked rate, you stay at the higher locked rate unless your lender offers a float-down option or you take other action.

Some lenders offer float-down provisions that let you capture a lower rate if rates drop significantly during your lock period. These options usually come with conditions—like the rate must drop by a certain amount or you pay a fee. Check your rate lock agreement to see what options you have.

You can ask your lender about re-locking at a lower rate if rates drop substantially. Some lenders will work with you, especially if you're close to closing. Share your situation with your loan officer and they can walk you through what's possible with your specific loan.