Academy Mortgage is continuing to answer the top 10 questions new home buyers have about mortgages in its weekly Mortgage Minute series. This week, Academy Mortgage answers the question, “When should I lock in my interest rate?”

Deciding when to lock in your interest rate depends on how long your closing process is going to be. Most mortgage rates are quoted for a 30-day lock, which will give you the best interest rate. It’s always safe to lock in your interest rate as soon as possible, as interest rates may change at any time because the market changes on a daily basis. When this happens, if you are not locked in and rates rise, you will be subjected to that higher rate.

If your timeline for closing is more than 30 days, there are extended lock options you can take advantage of. When choosing this option, there will most likely be an upfront fee that may or may not be refundable. However, in most cases, like at Academy Mortgage, the fee is refundable at the time of closing. Extended locks also typically include a float down option, which allows you to float down to a lower rate if interest rates fall once you’re within 30 days of closing. This option gives buyers the best of both worlds, because you can lower your rate if rates fall, but it protects you from paying a higher interest rate if those rates rise before you close on your home.