Secure Your Mortgage Rate for Longer: How Extended Rate Locks Can Benefit Homebuyers
Secure Your Mortgage Rate for Longer: How Extended Rate Locks Can Benefit Homebuyers
Are you preparing to purchase a home this year? If fluctuating mortgage rates have left you anxious about timing your loan closing perfectly, an extended rate lock could provide the flexibility and peace of mind you need.
What Is an Extended Rate Lock?
Typically, homebuyers have 60 days to finalize their loan after locking in a mortgage rate. However, with an extended rate lock option, this period can be stretched to 350 days for a one-time fee. This extended window allows you to secure today’s rate while giving you nearly a year to close on your home.
Key Benefits of an Extended Rate Lock
- Rate Protection: Shield yourself from potential interest rate hikes during the homebuying process.
- Float-Down Option: If a lower rate becomes available within 60 days of closing, you can adjust your rate once at no additional cost.
- Flexibility for Custom Builds: Take advantage of the extended timeline to design your dream home, including structural choices, flooring, countertops, and smart home features, without rushing due to rate concerns.
Why Consider an Extended Rate Lock?
An extended rate lock is ideal if you’re building a new home or need extra time to navigate the buying process. It eliminates the stress of racing against a 60-day deadline and lets you focus on securing the right property or finalizing construction details. Multiple lock-term options are available to suit varying timelines.
By opting for an extended rate lock, you gain control over your financial planning while safeguarding against unpredictable market shifts—empowering you to move forward with confidence.
