Name: Mortgage Mark
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What Is the Lock and Shop Program?

The Lock and Shop program offers homebuyers the ability to lock in an interest rate for a specified period—up to 360 days—before they find a property. This feature protects borrowers from rising interest rates and gives them the flexibility to take their time during the home search.

Financing flexibility like our “Lock and Shop” and “Extended Locks” programs allow you to take advantage of today’s rates while buying or building your new home.

Unlike the traditional mortgage process, where the interest rate is locked after signing a purchase contract, this program flips the script, letting you secure a rate upfront and shop with peace of mind.

Whether you’re navigating a volatile market or simply want the confidence of locking in a great rate, the Lock and Shop program is designed to make the process smoother, less stressful, and more secure.

Lock your rate; then start your home search with confidence.

Key Lock & Shop Program Features

Rate Lock Options: Lock your rate for 60, 90, 120, 180, 270, or 360 days.
No Upfront Cost: 60- and 90-day locks are free, while longer locks require a refundable 0.5% deposit, credited at closing.
Float-Down Flexibility: If rates drop by 0.25% or more, you can adjust your rate within 60 days of closing for a small fee.
Wide Compatibility: Available for conventional (Fannie Mae, Freddie Mac), FHA, VA, and USDA loans.

Why Choose Lock and Shop?

The Lock and Shop program is perfect for:

Volatile Markets: Protect yourself from significant rate increases. For example, in late 2024, rates rose by 75% in just 4–6 weeks. Lock and Shop would have been a game-changer for many buyers during that time.

Budget-Conscious Buyers: Secure a rate and payment that fits your budget to avoid disqualification if rates rise.

Relocations: If you’re moving for work, this program allows you to lock a rate while you search for a home in your new city.

New Home Construction: Lock your rate for up to 360 days while your home is being built.

Certainty in Uncertain Times: Gain peace of mind knowing your rate is locked while you focus on finding the right home.

How Does the Lock and Shop Program Work?

1. Get Pre-Qualified:

Start by providing your financial information to determine how much you can afford. We’ll issue a pre-qualification letter, giving you confidence during your home search.

2. Lock Your Rate:

Choose a lock period (60–360 days) that aligns with your needs.

60- and 90-day locks: Free.
120–360-day locks: Require a refundable 0.5% deposit at the time of lock.

3. Search for Your Home:

With your rate locked, shop confidently, knowing your budget and rate won’t change—even if the market fluctuates.

4. Secure the Loan:

Once you’ve found a property, finalize your loan. If rates have dropped, exercise the float-down option to adjust to the lower rate.

5. Closing:

Complete the process and enjoy the certainty of a locked rate, tailored to your needs.

A Closer Look at the Process:

The “normal” process for locking an interest rate involves waiting until you’ve signed a contract for a specific property. However, the Lock and Shop program flips the script:

Traditional Mortgage Loan Process:

Find a home.
Execute a purchase contract.
Lock in your interest rate.

Lock and Shop Program Process:

Lock your interest rate.
Shop for your dream home.
Close with confidence, knowing your rate is secure.
This unique feature protects you from rate hikes, like the 75% increase seen in late 2024, giving you the peace of mind to focus on finding the right home.

Example Scenarios:

Corporate Relocations: If you’re moving to a new city, Lock and Shop allows you to secure your rate while you search for a home in a competitive market.
Building a Home: Secure today’s rates for up to 360 days, even if construction takes longer than expected.
Volatile Markets: In rapidly changing markets, this program provides rate security and budget stability

Additional Details:

Slightly Higher Rates: Lock periods longer than 30 days have slightly higher rates:

60-day locks: ~0.125% higher.
90-day locks: ~0.25% higher.
Longer locks may require deposits but offer unmatched flexibility.

Float-Down Example: If you lock a rate at 6% and rates drop to 5.625%, you can adjust for a fee. We’ll calculate whether it’s worth it based on your savings.

Conclusion:

The Lock and Shop program is a versatile, stress-free way to secure your rate and shop with confidence. Whether you’re relocating, building, or navigating a volatile market, this program provides flexibility, protection, and peace of mind.

If you or someone you know is interested in locking in a rate and shopping for a home, contact the Mortgage Mark Team today. When you think mortgage, think Mark!

Rate Lock and Shop Program FAQs

Q: How long can I lock in an interest rate?

You can lock for 60, 90, 120, 180, 270, or 360 days.

Q: Is there a cost for the Lock and Shop program?

60- and 90-day locks: Free.
120–360-day locks: Require a 0.5% refundable deposit, credited at closing.

Q: How does the float-down option work?

If rates drop by 0.25% or more, you can adjust your rate for a fee of 0.5% of the loan amount (e.g., $1,500 for a $300,000 loan).

Q: What loan programs qualify?

The program works with conventional (Fannie Mae, Freddie Mac), FHA, VA, and USDA loans. Jumbo and non-conforming loans are not eligible.