Cost Overview
Standard 30-45 day rate locks are typically FREE in Arizona. You pay for extended lock periods (60+ days), lock extensions beyond the original period, or special float-down provisions. Costs range from 0.125% to 1.00% of the loan amount depending on the service.
Example on $400,000 loan:
- • 45-day standard lock: $0
- • 60-day lock: $500 - $1,000
- • 15-day extension: $500 - $1,000
- • Float-down option: $500 - $1,000
Standard Rate Lock Fees
30-Day Lock
Standard offering from most Arizona lenders
- ✓ No upfront cost
- ✓ No hidden fees
- ✓ Best for refinances
- ✓ Quick closing required
45-Day Lock
Usually free with major lenders
- ✓ No additional cost
- ✓ Adequate timeline
- ✓ Standard for purchases
- ✓ Safety buffer included
60-Day Lock
Extended period protection
- • $400k loan = $500-$1,000
- • Complex transactions
- • New construction
- • Peace of mind cost
Extended Lock Period Costs
| Lock Period | Typical Cost | $300,000 Loan | $500,000 Loan | $700,000 Loan |
|---|---|---|---|---|
| 30 Days | Free | $0 | $0 | $0 |
| 45 Days | Free (usually) | $0 | $0 | $0 |
| 60 Days | 0.125% - 0.25% | $375 - $750 | $625 - $1,250 | $875 - $1,750 |
| 90 Days | 0.375% - 0.50% | $1,125 - $1,500 | $1,875 - $2,500 | $2,625 - $3,500 |
| 120 Days | 0.50% - 0.75% | $1,500 - $2,250 | $2,500 - $3,750 | $3,500 - $5,250 |
| 180 Days | 0.75% - 1.00% | $2,250 - $3,000 | $3,750 - $5,000 | $5,250 - $7,000 |
Important: These fees are typically rolled into your loan or paid at closing. Some lenders may charge upfront. Always confirm the payment structure with your lender.
Rate Lock Extension Costs
If your closing is delayed beyond your original lock period, you'll need to extend your lock. Extension fees are among the most common unexpected costs in Arizona home purchases.
Extension Pricing Structure
Per Extension Period (typically 15 days):
- • First extension: 0.125% - 0.25% of loan amount
- • Second extension: 0.25% - 0.375% of loan amount
- • Third+ extension: 0.375% - 0.50% of loan amount
Extensions become progressively more expensive to discourage delays.
Extension Cost Examples
$400,000 loan, first 15-day extension:
$400,000 × 0.00125 = $500 minimum
$400,000 loan, second 15-day extension:
$400,000 × 0.00250 = $1,000 minimum
Total for 30 days of extensions: $1,500+
When Extensions Happen
Common reasons Arizona buyers need extensions:
-
🏠
Appraisal Delays
High demand in markets like Phoenix and Scottsdale can delay appraisals by 2-3 weeks
-
📄
Document Issues
Missing paperwork, tax return issues, or employment verification problems
-
🏗️
Construction Delays
New builds in areas like Gilbert frequently experience timeline changes
-
📋
Title Problems
Liens, easements, or boundary disputes requiring resolution
-
🏢
HOA Documentation
Condo associations can take 2-3 weeks to provide required documents
Avoiding Extension Fees
- ✓ Choose adequate initial lock period
- ✓ Submit all documents immediately
- ✓ Respond to lender requests within 24 hours
- ✓ Order appraisal early in process
- ✓ Address issues proactively
Float-Down Option Fees
A float-down provision lets you lock a rate today but re-lock at a lower rate if the market drops significantly before closing. This "best of both worlds" protection comes at a cost.
Float-Down Pricing
- One-time float-down: 0.125% - 0.25% of loan amount
- Unlimited float-down: 0.25% - 0.50% of loan amount
- Premium float-down: 0.50% - 0.75% of loan amount
Cost Examples
$350,000 loan:
- • One-time: $437 - $875
- • Unlimited: $875 - $1,750
$550,000 loan:
- • One-time: $687 - $1,375
- • Unlimited: $1,375 - $2,750
Float-Down Terms & Conditions
Float-down options come with specific requirements:
Minimum Rate Decrease
Most lenders require rates to drop by at least 0.25% - 0.50% to trigger the float-down. Smaller decreases don't qualify.
One-Time Use
Standard float-downs allow only ONE re-lock during your lock period. Choose your timing carefully.
Timing Restrictions
Some float-downs only work in the last 15-30 days before closing. Can't use immediately after locking.
Non-Refundable Fee
You pay the float-down fee whether or not you use it. If rates don't drop enough, you lose the fee.
Is Float-Down Worth It? Only if you expect significant rate drops (0.50%+) and are willing to monitor rates daily. Most borrowers don't benefit enough to justify the cost.
Hidden Costs to Watch For
🚨 Rate Adjustment Fees
Some lenders charge "adjustment fees" if loan terms change during the lock period:
- • Loan amount increases significantly
- • Property value changes after appraisal
- • Credit score drops during processing
- • Switching from primary to investment property
Cost: 0.125% - 0.50% or re-lock at current rates
🚨 Lock Cancellation Fees
If you decide not to proceed with the loan after locking:
- • Some lenders charge cancellation fees
- • Typically $200 - $500 flat fee
- • May forfeit any upfront lock fees paid
- • Read your lock agreement carefully
🚨 Re-Lock Administrative Fees
When extending or using float-down provisions:
- • $100 - $300 administrative processing fee
- • Separate from the percentage-based extension cost
- • Covers paperwork and system updates
- • Not always disclosed upfront
🚨 Expired Lock Re-Lock Fees
If your lock expires completely:
- • May face re-lock origination fee
- • Typically 0.25% - 0.50% of loan amount
- • Plus you get current market rate (possibly higher)
- • Very expensive - avoid at all costs
Real-World Cost Scenarios
✓ Best Case: Standard Purchase
Loan Amount: $425,000 | Lock Period: 45 days | Closes on time
Initial lock fee: $0
Extensions: $0
Float-down: $0
Total Cost: $0
⚠️ Moderate Case: One Extension Needed
Loan Amount: $400,000 | Lock Period: 45 days | Appraisal delayed 10 days
Initial lock fee: $0
One 15-day extension @ 0.125%: $500
Float-down: $0
Total Cost: $500
⚠️ Costly Case: New Construction
Loan Amount: $550,000 | Lock Period: 90 days | Build delayed twice
Initial 90-day lock @ 0.50%: $2,750
First 30-day extension @ 0.25%: $1,375
Second 15-day extension @ 0.375%: $2,062
Total Cost: $6,187
✗ Worst Case: Lock Expiration
Loan Amount: $475,000 | Lock expires | Rates increased 0.75%
Original rate: 6.50% → New rate: 7.25%
Payment increase: $267/month
30-year cost: $96,120 more
Re-lock fee @ 0.50%: $2,375
Total Impact: $98,495
How to Minimize Rate Lock Costs
Before Locking
- ✓ Choose the right initial lock period - better too long than too short
- ✓ Get pre-approved first so you're confident in closing timeline
- ✓ Negotiate lock fees with your lender - some are flexible
- ✓ Shop multiple lenders - lock policies vary significantly
- ✓ Understand all fees in writing before committing
After Locking
- ✓ Submit all requested documents within 24-48 hours
- ✓ Order appraisal immediately after contract signing
- ✓ Respond to lender questions promptly to avoid delays
- ✓ Request extensions early if delays are likely (cheaper than emergency extensions)
- ✓ Stay in close contact with your loan officer about timeline
Related Rate Lock Resources
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