Mortgage Rate Lock: When and How to Lock Your Rate

Most Nevada lenders offer free rate locks for 30-45 days. Extended lock periods (60-90 days) typically cost 0.125%-0.375% of the loan amount. For example, on a $400,000 loan, a 60-day lock might cost $500-$1,500.

Some lenders charge an upfront lock fee ($300-$500) regardless of period, while others build the cost into the rate itself (adding 0.125%-0.25% to your interest rate). Always ask for the total cost of locking before committing.

Generally, no—rate locks are binding agreements. Once you lock, you're committed to that rate (or you walk away from the loan entirely). You can't "unlock" to capture a better rate if the market improves.

However, some lenders offer a "float down" option that allows you to capture a lower rate if rates drop significantly (usually 0.25% or more) during your lock period. This option may cost extra or have specific conditions. Ask your loan officer if float-down is available.

If your lock expires before closing, you have two options: extend the lock (usually costs 0.125%-0.25% per week or 0.25%-0.375% per 15 days) or re-lock at current market rates. If rates have risen, you'll pay the higher rate unless you pay to extend your original lock.

To avoid expiration, choose a lock period that gives you 5-10 days of buffer beyond your expected closing date. If delays occur (appraisal issues, title problems, etc.), notify your lender immediately to discuss extension options before the lock expires.

The lock period starts on the date you and your lender agree to lock (the "lock date"), which should be documented in writing. You'll receive a rate lock confirmation showing the lock date, rate, points, and expiration date.

Lock periods are calendar days, not business days. A 45-day lock starting January 1st expires February 14th. Weekends and holidays count toward your lock period. Plan accordingly and don't assume you get extra time for holidays or weekends.

Minor changes in loan amount (under 5-10%) usually don't affect your locked rate. However, significant changes—such as home price renegotiation after appraisal, changing loan programs (FHA to Conventional), or substantial increases in loan-to-value (LTV)—may require re-locking at current rates.

If the appraisal comes in low and you need to adjust your loan amount down, most lenders honor the lock. If you want to borrow more or change key loan terms, the lender may re-price. Always confirm with your loan officer how changes affect your lock.

Most lenders require a signed purchase contract and specific property address to lock a rate. However, some Nevada lenders offer "early rate lock" or "lock-before-you-shop" programs that allow pre-approval clients to lock a rate for 60-90 days while searching for a home.

These extended locks typically cost more and may require full loan approval (not just pre-approval). If you're shopping in a competitive Nevada market with rising rates, ask your lender if they offer this option—it can be valuable peace of mind.

FHA and VA loans follow the same rate lock principles as conventional loans—the timing and duration are the same. However, FHA and VA loans often take slightly longer to close (35-50 days) due to additional property inspections and appraisal requirements, so a 45-60 day lock is common.

For VA IRRRL or FHA Streamline refinances, closings are faster (often 20-30 days), so a 30-day lock works well. Discuss your specific loan type and expected timeline with your Nevada loan officer to choose the right lock period.

The terms are often used interchangeably—both mean the lender has committed to honoring a specific interest rate for a set period. The formal document is usually called a "Rate Lock Agreement" or "Rate Lock Confirmation."

The lock is contingent on you closing within the lock period and meeting all loan conditions (income verification, appraisal, etc.). If you don't close or fail to meet conditions, the lender isn't obligated to honor the rate.