Rate locks explained: length, extensions and the fine print
When the lock runs out
Lock note
If closing slips past the lock's end date, the lender may offer an extension for a fee or for a slightly worse price, or require a relock at the current market price, which can be better or worse than the original. Who pays can depend on why the delay happened, so ask how the lender handles delays it causes.
Last reviewed against the primary sources listed below.
Questions to ask up front
- How much does each extension day or period cost?
- Is there a cap on extensions?
- If the delay is the lender's fault, who pays?
- If I relock, is it at the worse of the original or current price?
Rate lock questions
What happens if my rate lock expires?
You usually choose between paying for an extension and relocking at the price available at that time, under your lender's policy.
Who pays for a rate lock extension?
It depends on the lender's policy and the cause of the delay. Get the policy in writing when you lock.