Lock extension deep dive? Rate lock extensions typically cost 0.125-0.25% of the loan amount per week. Request an extension before your current lock expires to avoid losing your rate entirely.
What Does a Lock Extension Cost?
When you need more time to close, extending your rate lock is the most common solution. Most lenders charge 0.125% to 0.25% of the loan amount per week for an extension. On a $300,000 loan, that works out to roughly $375 to $750 per week. Some lenders offer a flat fee instead of a percentage, so ask about both options.
The exact cost depends on market conditions, how far you are from closing, and the lender's policy. If rates have risen since you locked, extensions tend to be more expensive. If rates have held steady, your cost may be lower.
When To Request an Extension
Timing matters. Request your extension before the current lock expiration date. Once the lock expires, the lender may require a full repricing at current market rates, which could cost you significantly more than an extension fee. Call your loan officer as soon as you know the closing will be delayed.
If you are still within the option period or waiting on appraisal or repairs, discuss extension options early. Many lenders will grant a short extension at a reduced fee if you have a clear path to closing within the next week or two.
Negotiating Extension Terms
Extension terms are not always set in stone. If you have a strong application and a clear closing date, ask your lender to waive or reduce the extension fee. Some lenders will accommodate a one-time free extension of a week or two when the delay is outside your control such as a slow appraisal or a title issue.
Always get the extension terms in writing before agreeing. Confirm the new lock expiration date, the fee amount, and whether further extensions are available if needed.
