Mortgage Strategy
Rate Lock Strategy for Refinances
Rate locks protect you from market moves during processing, but lock periods and extensions can add cost if timelines slip.
How to choose a lock window
- Match lock length to realistic lender timeline.
- Add buffer for appraisal/title delays.
- Avoid shortest lock if file complexity is high.
Questions to ask lender
- Extension fee structure
- Float-down options
- Typical close time for similar files
Practical move: pick the shortest lock that still has realistic closing buffer to control both rate risk and extension risk.
Before locking
- Finalize document package first.
- Confirm timeline dependencies.
- Model break-even at locked rate.