Refinancing
What Happens if Rates Drop After You Lock
Published 2026-07-31 · Last reviewed 2026-07-31 · Reviewed by Jim Lyddon, NMLS #2573609
A rate lock protects you if rates rise, and in exchange you generally give up the benefit if they fall. Some lenders offer a float-down option under specific conditions and usually at a cost. Policies vary considerably, so the terms should be understood at the time you lock.
What to know
- A lock is a two-way commitment, not a one-way option.
- Float-down availability, cost and conditions vary by lender.
- Ask what happens if your closing date moves.
- Refinancing later is always possible but is never guaranteed.
How Jim approaches this
Bring your specific numbers. General education gets you oriented, but the decision only becomes clear when it is run against your income, your cash position, the property you are considering and how long you plan to keep the loan. That conversation is free and does not require an application.
The information on this website is provided for general education only and does not constitute financial, tax or legal advice. Loan programs, guidelines and availability are subject to change and to borrower and property qualification.
JHL Mortgage, Inc. is an Equal Housing Opportunity lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.