Rate lock extensions typically cost 0.125% to 0.25% of the loan amount per week. On a $350,000 loan, that is $438 to $875 per week. Extending before your lock expires may be cheaper than letting it expire and paying for a new lock at a potentially higher rate.
Cost Calculation
The cost depends on how far rates have moved since you locked. If rates rose, the extension may cost more because the lender must cover the difference. If rates stayed flat, the extension fee is minimal.
Example extension costs on $350,000 loan:
- 1-week extension at 0.125%$438
- 2-week extension at 0.125%$875
- 1-week extension at 0.25%$875
- 30-day extension (flat fee)$500 - $1,500
How to Request an Extension
Contact your loan officer as soon as you know you need more time. Request the extension in writing. The lender will quote the cost. If you wait until the lock expires, you may need a new lock at current market rates which could be higher.
Preventing Extension Fees
Choose a lock period long enough for your closing timeline. Typical closings take 30-45 days. If you are buying new construction, lock closer to the completion date. Some lenders offer free 15-day extensions on certain loan programs.
