Yes, you can change your interest rate after locking it, but only through specific paths: a float-down clause built into your lock agreement, a full relock at current market rates, a switch to a different loan product, or a change in your application that forces the lender to reprice the loan. Each path has its own fees and conditions, and some changes happen whether you want them to or not.
Using a Float-Down Provision
A float-down is a clause in your rate lock agreement that lets you reduce your locked rate—usually one time—if market rates drop by a specified amount before closing. It is the cleanest way to capture a rate decrease without abandoning your lock.1Consumer Financial Protection Bureau. What’s a Lock-In or a Rate Lock on a Mortgage?
The required drop varies by lender. Some allow a float-down when rates fall by a quarter of a percentage point; others require a drop of half a point or more before the provision kicks in.1Consumer Financial Protection Bureau. What’s a Lock-In or a Rate Lock on a Mortgage? Not every lender offers the option, and those that do structure it differently. Some include it at no extra charge but set a high threshold. Others charge upfront, from a quarter of a point up to more than a full point of the loan amount.
The adjusted rate you receive is typically not as low as the current market rate. Lenders often split the difference or apply their own formula, so you capture only part of the decline.
Before locking, ask three questions and get the answers in writing: Is a float-down option available? What is the minimum rate decrease that triggers it? What does it cost?
Relocking or Switching Loan Products
If your lock has no float-down clause, you can ask the lender to relock at current market rates. That means abandoning your original lock and paying a new fee, which compensates the lender for the administrative cost and market risk of issuing a fresh commitment.
Switching loan products also changes your rate. Moving from a 30-year fixed to a 15-year term, or from a conventional loan to an FHA loan, forces the lender to recalculate pricing based on the new product. The result may be higher or lower than your original locked rate depending on how that product is priced when you switch.
Changes That Force a Rate Adjustment
Your locked rate is not permanently fixed until closing. Even without any action from you, certain changes to your application require the lender to adjust the terms. Common triggers include:
- A drop in your credit score from taking on new debt or missing a payment
- An appraisal that comes in higher or lower than expected
- A change in your down payment amount
- The lender being unable to verify overtime, bonus, or other irregular income
Any of these can prompt the lender to recalculate your rate and costs based on the updated risk profile.1Consumer Financial Protection Bureau. What’s a Lock-In or a Rate Lock on a Mortgage? The lender then issues a revised Loan Estimate reflecting the new terms.2Consumer Financial Protection Bureau. Look Out for Revised Loan Estimates
To keep the rate you locked, avoid opening new credit accounts, making large purchases on credit, or changing jobs during underwriting. If something in your finances shifts before closing, tell your loan officer immediately rather than waiting for the lender to discover it.
What It Costs to Change a Locked Rate
Almost every rate change involves a fee. What you pay depends on which path you take.
Float-Down Fees
If your lender offers a float-down, the fee typically ranges from 0.25% to 1% or more of the loan amount. On a $400,000 mortgage, that is $1,000 to $4,000 or more. Ask whether the fee is refundable if rates never fall enough to trigger the float-down.
Relocking Fees
Abandoning your original lock to start fresh at current market rates carries its own fee, separate from any float-down charge.
Lock Extension Fees
If the rate change process pushes your closing past the lock expiration date, you will need to extend the lock to keep your rate active. Extension fees generally range from 0.25% to 1% of the loan amount, and lenders commonly charge in blocks of 15 or 30 days rather than daily. On a $400,000 loan, that is $1,000 to $4,000 depending on the length and lender.
Discount Points
After your rate is modified, you can still buy discount points to lower it further. Each point costs 1% of the loan amount, or $4,000 per point on a $400,000 mortgage, and is paid at closing.
The Break-Even Math
Before paying for a float-down, calculate how long it takes to recoup the fee through lower monthly payments. On a $400,000 loan, a 0.25% rate reduction saves roughly $65 per month. If the float-down fee is $1,000, you break even in about 15 to 16 months. If you plan to sell or refinance before then, the fee costs more than you save. Keeping the fee at 0.25 points or less makes recouping the cost more realistic.
How to Request the Change
Start by reviewing your rate lock agreement. It states your locked interest rate, any points, the expiration date, and whether a float-down provision is included, along with the minimum rate drop required and any fee.
Contact your loan officer or the lender’s lock desk to formally request the change. Many lenders handle this through a secure online portal; others require a written request. Ask for written confirmation that your request has been received. The lender then evaluates current market conditions against your contract terms and decides whether you qualify.
If approved, the lender issues a revised Loan Estimate reflecting your new interest rate and updated closing costs.2Consumer Financial Protection Bureau. Look Out for Revised Loan Estimates Compare the new monthly payment, total interest cost, and closing costs against the original. Sign and return the revised disclosures promptly. Delays can push your closing date back or cause your lock to expire.
One timing catch to plan around: federal law requires you to receive your Closing Disclosure at least three business days before closing.3Consumer Financial Protection Bureau. Regulation Z – 1026.19 Certain Mortgage and Variable-Rate Transactions If the annual percentage rate changes beyond a defined tolerance after that disclosure is issued, the lender must send corrected disclosures and the three-business-day clock resets. A late rate change can delay closing.
If Your Rate Lock Expires
If your lock expires before closing, you lose the guaranteed rate and generally face three options:
- Accept the current market rate. If rates have risen, your payment goes up. If they have fallen, you may come out ahead of your original lock.
- Pay to extend the lock at the fees described above.
- Let the rate float and accept whatever is available on the day you close. Rates could move either direction before then.
Lenders may not always agree to an extension, and extensions can be expensive. Before you lock, ask what happens if closing is delayed and the lock expires, particularly whether the lender covers extension costs when the delay is on their end.1Consumer Financial Protection Bureau. What’s a Lock-In or a Rate Lock on a Mortgage? Get the answer in writing.
Walking Away for a Different Lender
If rates drop significantly or a competitor offers a much better deal, you can abandon your current lender entirely. No federal law obligates you to close with the lender just because you locked a rate.
The cost is real, though. You will likely lose any non-refundable fees already paid, such as application and appraisal fees.4Consumer Financial Protection Bureau. Choosing a Loan Offer Some lenders also charge a cancellation fee spelled out in the lock agreement. And you have to restart the application and underwriting process with a new lender, which takes time.
Do the math before switching. Add up the fees you would lose with your current lender, any new application and appraisal fees with the new one, and the cost of delaying closing. Compare that total against the savings from a lower rate over the life of the loan. In most cases, exercising a float-down or negotiating with your current lender is cheaper and faster than starting over.