It’s a funny thing about mortgages. Little differences add up to huge sums. When you’re talking about getting a loan for hundreds of thousands of dollars, even a sliver of a percentage can have a big impact. Getting a rate that’s even a half-percent lower translates to tens of thousands of dollars in savings. 

After all the work you’ve done to compare VA rates and find the best one, the last thing you want is a last-minute curveball. And that’s why lenders offer mortgage rate locks.

Sometimes, that lock costs money. The trick is figuring out how to lock in a VA rate at the right time for the right price. That starts with figuring out what a lock could do for you. 

Mortgage rate lock 101

A mortgage rate lock is just what it sounds like: a way to keep your mortgage rate steady even if the market shifts. Mortgage rates have been trending downward, but not consistently. You don’t want rates to take a little jump right as you’re getting your keys. 

Fortunately, you have the option to lock in your mortgage rate. If you time it right, that helps you keep your rate steady all the way through closing, preventing unwelcome surprises. 

Some lenders offer free rate locks, but they’re usually for shorter-term periods (e.g., 30 days). You can see if you’ve got a rate lock by checking the top of page one on your loan estimate. If you do have a rate lock, it will also tell you how long the lock lasts.

Beyond the free rate lock some lenders offer, you can pay to secure your rate. Lenders usually offer locks for 30, 60, and 90 days. 

The longer you want to lock the rate, the more you’ll usually need to pay. 

Some lenders charge a flat rate for the lock. With others, it costs a percentage of your loan amount — usually in the 0.125% to 0.5% range. 

In short, the bigger your loan and the longer you want to lock in a VA rate, the pricier it tends to get. 

The downsides of VA loan rate locks

The most obvious drawback of locking in a VA rate comes from the price tag. 

That can tick up more if you have to pay for an extension. If you lock your rate for 30 days but it takes 45 days to close, for example, you might need to pay the lender to extend the lock. 

The other downside is that locks work both ways. If mortgage rates fall, you’re stuck with the rate you and your lender have agreed to with the lock. 

To help there, you can ask the lender if they offer a rate float-down option. This means the lender will lower your rate if market rates come down, even if you’ve got a lock. Be advised, though, that rate locks with a float-down option tend to cost more. 

When to lock in your VA rate

Generally speaking, it makes the most sense to lock in a VA rate when all of the pieces of the puzzle are in place. That means you’ve got a signed purchase contract for the house you’re buying and you’ve been approved with the lender. That rate locks helps keep everything steady while the final few details fall into place. 

It usually takes 30–45 days to close on a new house. During that time, your lender finishes getting all the information they need. You have the title of the house searched to make sure you can take over ownership cleanly. You get the property professionally appraised so the lender can be sure it’s worth what you’re paying for it. 

All of that takes time. If you lock in a VA loan rate for the right length of time, it covers all of that. 

Your real estate agent and mortgage lender should be able to help you estimate how long closing will take. If your sale is pretty straightforward, that 30–45-day range is pretty typical. If you’re going through negotiations with the seller or you have a lot of contingencies to clear, you probably want to get a longer lock.

Other situations in which you might want a VA loan rate lock

The best use case for a rate lock on a VA loan is in the final stages of closing on your loan. But there are some instances when it makes sense to lock your rate even before you can reasonably estimate your timeline to get your keys. 

Specifically, getting a rate lock for your VA loan makes sense if you have strong reason to believe rates will rise. Maybe inflation is trending up and experts are speculating that the
Federal Reserve will raise its federal funds rate at its next meeting. 

Those things don’t directly impact mortgage rates, but they shape the lending economy. If you’re not sure what to watch for, a mortgage broker can help you evaluate market indicators to see if it might be a good time to lock. 

Geopolitical events can also shake up economic markets — and, consequently, mortgage rates — in a major way. If you’re trying to buy a house and there’s a national election cycle coming up, for example, you might want to get a VA rate lock.

Really, though, most people benefit from locking their VA loan rate when they’re happy with their current rate and in the process of closing on their house. The rate lock for those final stages gives you certainty that the budgeting work you’ve done won’t go out the window.

If a rate lock is important to you, ask different lenders what they offer. Some lenders will include a free initial rate lock on your VA loan. 

To start shopping lenders and see what they can do for you, you can use our VA rate table today.