What Is a Lock Fee

A loan lock provides the borrower with protection against a rise in interest rates during the lock period. The lender may charge a lock fee, which the borrower must pay if they do not lock the interest rate.

Is a rate lock fee worth it?

A rate lock ensures that they won’t. … That’s when a rate lock is well worth the price. If mortgage rates go down: Rates may also go down before your closing. Unless you have a one-time “float down” option on your lock (see below), you’ll miss the lower rate.

Are lock in fees refundable?

A rate lock fee is a fee that allows a borrower to lock their rate but that fee is not refunded at closing. This term denotes a locked rate which extends beyond the typical 60-90 days offered by most lenders.