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Mortgage Glossary

Rate Lock Extension

Mike Starr·Reviewed August 2026

A rate lock extension is an agreement that extends a borrower's locked interest rate beyond its original expiration date when a loan has not yet closed. Extensions are typically needed due to delays in underwriting, appraisal, or closing. Lenders usually charge a fee for extensions — either a flat amount or a percentage of the loan — which may be paid upfront or added to closing costs.