What Happens If Your Rate Lock Expires?

If a rate lock expires before you close, you may lose the locked rate. Most lenders then offer the loan at the rate and points prevailing at that time, or sell you an extension. Lock policies vary by lender, so ask about extension costs before you lock and choose a period that covers closing.

A rate lock means your rate will not change between the offer and closing, as long as you close within the specified time and there are no changes to your application. The CFPB notes that a locked rate can still change if your loan amount, credit score or verified income change, and that lock policies vary by lender.

The Federal Reserve's lock in guide explains that if you do not settle within the lock in period you might lose the interest rate and points you locked, and that most lenders will then offer the loan at the prevailing rate and points. Some lenders cannot honor the old rate because they can no longer sell the loan to investors at that rate.

So the time to plan is before you lock. Pick a lock period that covers closing with some room, and ask what an extension costs and whether it is available.

Your choices when a lock is about to expire

Fees and options differ by lender.

What to do

1. Ask your lender what lock length it recommends for your closing date.
2. Ask the extension cost before you lock.
3. Track the expiration date next to your closing date.
4. If a delay is the lender's fault, ask whether they cover the extension.