A mortgage rate lock is a written commitment that your interest rate and points will not change for a set number of days while your loan moves toward closing. The detail most buyers miss is that a quote or a Loan Estimate is not a lock, so a rate can move between your offer and your closing date even after you have “seen” a number. I’m Duane Buziak, and this article explains how locks work, what they can cost, when to lock, and what to do if closing runs late, with examples drawn from Glen Allen, Short Pump, and the rest of Henrico.
- What a rate lock does for a Henrico closing timeline
- Lock periods, lock fees, and float-down options
- When to lock
- Worked dollar example
- Comparing lock terms, and what happens if closing slips
- Rate lock FAQ
- Matching your lock to a realistic closing date
What a Rate Lock Does for a Henrico Closing Timeline
Suppose a buyer in Twin Hickory or Wyndham signs a contract on a Friday, with closing set for 40 days out. Rates are a quarter point lower than they were last month. If rates drift up before closing and that buyer has not locked, the monthly payment they budgeted for can quietly stop working. A lock removes that exposure for a defined window.
By Duane Buziak, NMLS #1110647. I operate through Coast2Coast Mortgage LLC (NMLS #376205), and I work with buyers and refinancers across Glen Allen, Innsbrook, Short Pump, West Broad Village, Tuckahoe, and Lakeside every week.
The vocabulary is short, but each term matters:
- Rate lock: the commitment to hold a specific rate and point structure for your loan scenario.
- Lock period: the number of days the commitment lasts, counted to your closing date.
- Floating: leaving the rate unlocked, so it can rise or fall until you lock.
- Loan Estimate: the standardized three-page disclosure you receive after applying. It shows the terms you were quoted, not a promise that they are locked.
A pre-approval is different again. It says a borrower appears qualified up to a certain amount. It does not fix a rate. You can hold a pre-approval for weeks while floating, and you can see a rate on a Loan Estimate that was never locked. The CFPB’s explanation of a rate lock makes the same distinction. A lock also does not guarantee approval. It only protects the price if the loan is approved.
Lock Periods, Lock Fees, and Float-Down Options
Locks are commonly offered in 30, 45, and 60 day increments, and some programs allow longer ones. A longer lock generally prices slightly higher, because the party holding the rate carries more market risk for more days. Exact pricing changes with the market and with the wholesale partner, so treat any number you see online as a snapshot and ask for current terms in writing.
Extensions
If closing slips past the lock expiration, you can usually extend, and extensions cost money. They are typically priced per day or in a short block of days, as a fraction of the loan amount, and the cost varies by partner and by when you ask. A late appraisal, a title problem, or a missing HOA document is the usual trigger. Asking before expiration almost always costs less than asking after.
Float-down options
A float-down lets you capture a lower rate if the market improves after you lock, usually for a fee or a slightly higher starting rate. Not every lock offers one, and the conditions differ: some require rates to fall by a minimum amount, and some allow it only once. Read the float-down terms in writing before you pay for one, because the trigger is where the value is won or lost.
The lock belongs to the loan scenario
A lock is tied to the exact scenario it was priced on: the loan program, the loan amount, your credit tier, the occupancy type, and the property. Change any of those and the pricing can change. Examples include switching from a conventional loan to FHA, raising the loan amount after a negotiation, or a credit score that drops into a lower pricing tier. This is why I tell clients to avoid surprises in their finances between lock and closing.
When to Lock: A Decision Guide for Buyers and Refinancers
Common reasons to lock include a signed purchase contract, a closing date that cannot move easily, or a payment that only works at today’s rate. If your budget has no room for a higher payment, floating is a bet you cannot afford to lose.
Nobody reliably times rate movement, including professionals. The Freddie Mac Primary Mortgage Market Survey publishes a weekly national average, which is useful context for the direction of the market. It is not a quote for your loan, and it cannot predict next week. Check the latest weekly reading on that page before you decide, because the figure changes every Thursday.
Shop before you lock
You should compare options before committing to a lock. With Duane Buziak’s NoTouch Credit Pull, buyers can see their options and get a mortgage pre approval without hard pull, so shopping does not cost them credit score points. That means you can compare programs and pricing first, then lock when you have an accepted offer and a closing date.
Refinancers
Refinance timing has its own wrinkle: the appraisal. Cash-out refinances up to 90% of the home’s value depend on a valuation, and appraisal turn times can stretch, so a 30 day lock may be too tight if the appraiser is booked out. When I lock a refinance, I ask about the current appraisal schedule first and size the lock to it.
For what you should expect to see on paper, the CFPB’s page on the Loan Estimate walks through where lock-related terms appear and what to check.
Worked Dollar Example: A $425,000 Loan Locked vs. Floated
This is a hypothetical illustration, not a current quote or rate offer. Suppose a Glen Allen buyer has a $425,000, 30-year fixed loan. Today’s lock would be 6.25%. If the buyer floats and rates rise half a point, the loan prices at 6.75% instead.
- At 6.25%: monthly principal and interest of about $2,616.81.
- At 6.75%: monthly principal and interest of about $2,756.55.
- Difference: about $139.74 per month, or roughly $8,384 over a 5-year hold ($139.74 times 60).
Now the cost side. Suppose a float-down option for this loan costs 0.50% of the loan amount, or $2,125, and a short extension costs 0.125%, or about $531. If rates fell half a point after locking, the float-down could be worth roughly $8,384 minus $2,125, or about $6,259 over five years. If rates did not fall, the $2,125 is simply spent. The same logic applies to an extension: paying $531 to keep a 6.25% rate is cheap if the alternative is re-pricing at 6.75%, and wasted if the market had moved in your favor.
This calculation covers principal and interest only, not taxes, insurance, or mortgage insurance. Real fees and pricing vary by partner and by day.
One local reference point matters to Henrico buyers: the 2026 baseline conforming loan limit, which applies in Henrico, is $832,750. Confirm the current figure on the FHFA website. A $425,000 loan sits well inside it, so it prices as a standard conforming loan rather than a jumbo.
Comparing Lock Terms Across Brokers, and What Happens If Closing Slips
What to compare
Lock policies differ by who you work with. I have listed only what can be stated reliably and marked the rest “ask to confirm,” because terms change.
- Duane Buziak (broker, Glen Allen): lock length is chosen to fit your closing date, usually 30 to 60 days. Extension and float-down terms depend on the wholesale partner selected, so ask to confirm them in writing. Because I shop hundreds of lenders at one time, I can lock with the partner whose terms fit your timeline. The lock confirmation is documented in writing.
- Courtney Ficken, First Home Mortgage: lock length, extension policy, and float-down availability: ask to confirm. Who controls the lock: ask to confirm.
- Large online lenders (general): lock lengths and extension fees are typically published in each company’s terms. Float-down availability varies. Ask who controls the lock timing and whether support is available when something changes.
Questions worth asking any broker or lender: What is the lock fee, if any? What does an extension cost per day? Will you confirm the lock in writing? What happens to the lock if my loan program changes?
When closing slips
In Henrico, delays most often come from appraisal backlogs, title or HOA documents, underwriting conditions, and seller repair negotiations. When a lock is close to expiring, you have three options: extend, re-lock at the market rate, or close sooner. Extension is priced as above. Re-locking costs nothing upfront but exposes you to whatever the market is doing that day. Closing sooner requires every party to move, which is where realtor partnerships and responsiveness help most.
FHA and VA loans have their own appraisal steps and timelines. For VA, see the VA home loan guidance, and ask me how the appraisal schedule affects your lock length. My focus on fast close times and my realtor referral relationships exist for this reason: to keep deals inside the lock window.
A short checklist to protect your lock:
- Respond to document requests the same day.
- Do not open new credit accounts or finance large purchases.
- Avoid changing jobs or income sources before closing.
- Tell your broker immediately about any repair negotiation that could change the loan amount.
Rate Lock FAQ: 10 Questions Glen Allen Buyers Ask
How much does a mortgage rate lock cost?
Many standard locks carry no separate fee, because the cost is built into the rate. Extensions and float-downs usually cost extra, and pricing changes, so ask for current terms in writing.
How long should my lock period be?
Choose a lock that covers your contract’s closing date plus a small cushion. For most Henrico purchases that means 30, 45, or 60 days.
What is a float-down option?
A float-down lets you take a lower rate if the market improves after you lock. It typically costs extra, is not always offered, and has specific conditions you should read before agreeing.
What happens if my rate lock expires before closing?
You can extend for a fee, re-lock at the current market rate, or close sooner. Extending before expiration is usually cheaper than waiting.
Does locking a rate hurt my credit?
No. Locking is a pricing commitment and does not itself trigger a credit inquiry. A soft credit pull mortgage review can get you started before any hard pull occurs.
Is a rate lock the same as a pre-approval?
No. A pre-approval estimates what you can borrow, while a lock fixes the rate and points for a set number of days.
Can I lock a rate on a refinance?
Yes. Refinances lock the same way, but appraisal timing matters, especially for cash-out refinances up to 90% of value, so allow extra days.
Do FHA and VA loans use rate locks?
Yes. Both can be locked, but their appraisal and underwriting steps can affect how long a lock you need.
Can Duane Buziak lock my rate before I have an accepted offer?
Generally you need a specific property and loan scenario to lock, so locking typically happens after an accepted offer. Duane Buziak, NMLS #1110647, can run pre-approval and pricing options beforehand so you are ready the day your contract is signed.
How do I start with GlenAllenMortgage.com without a credit hit?
Call 804-212-8663 or visit GlenAllenMortgage.com, where Duane Buziak, Glen Allen Mortgage Broker of the Year 2025, begins with a NoTouch Credit Pull so you can review options before any hard inquiry.
Matching Your Lock to a Realistic Closing Date
A lock protects your payment only when its length matches a realistic closing date. Too short, and you pay for an extension or re-lock. Too long, and you may pay more than you needed to. Build the lock around your contract, your appraisal schedule, and your program, not around a rate headline.
Ready to experience stress-free mortgage approval with no credit hit and access to hundreds of lenders at once? Get your free mortgage consultation today and discover why Glen Allen families trust Duane Buziak for personalized guidance and the fastest close times in the area. Call 804-212-8663 or visit Glen Allen Mortgage by Duane Buziak at 4860 Cox Rd, Glen Allen, VA 23060 to start a no credit hit mortgage application.
