What Is a Rate Lock and Why Is It Important for NH Homebuyers?
- Jim Johnson
- Nov 20
- 2 min read
🏡 What Is a Rate Lock and Why Is It Important for NH Homebuyers?
When buying a home in Plymouth, Campton, Rumney, Thornton, Ashland, or anywhere across Central NH, timing your mortgage rate lock can make a big difference in your monthly payment.
A rate lock protects you from rising interest rates during the loan process, ensuring your mortgage rate stays the same through closing — even if the market changes.
Here’s exactly how rate locks work in New Hampshire.
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What Is a Mortgage Rate Lock?
A mortgage rate lock is an agreement between you and your lender guaranteeing a specific interest rate for a set period of time.
Common lock periods include:
30 days
45 days
60 days
90 days (for more complex loans)
While the rate is locked, it cannot increase, even if market rates rise.
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Why Rate Locks Matter in NH
In Central NH — especially in fast-moving markets like Plymouth — interest rates can shift quickly due to:
✔ Economic reports
✔ Inflation changes
✔ Federal Reserve announcements
✔ Market volatility
A rate lock protects your affordability and prevents surprises right before closing.
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What Happens If Rates Drop After Locking?
Two outcomes are possible:
You keep your locked rate (most common)
Your lender may offer a float-down option — allowing you to take advantage of lower rates for a small fee
Not all loans offer float-downs, so buyers should ask their lender upfront.
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How Long Should NH Buyers Lock Their Rate?
Your lock period should match your transaction timeline. Typical guidance:
✔ 30–45 days for most standard purchases
✔ 60 days for new construction or complex loans
✔ Longer locks when delays are expected (septic, well, appraisal, etc.)
Your lender and agent can recommend the safest timeframe.
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What Happens If the Rate Lock Expires?
If delays push you past the lock period:
The lock may be extended for a fee
You may need to relock at current market rates
Some lenders offer “lock protection” extensions
Extensions are common when appraisals or underwriting take longer than expected.
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Q&A
Q: Does locking a rate cost money?
A: Standard locks often have no upfront cost; extended locks or float-downs may have fees.
Q: Can a rate lock be broken?
A: Only with lender approval, and usually only if switching loan programs.
Keywords
nh rate lock, new hampshire mortgage rates, plymouth nh home buying, campton nh lending tips, rumney nh interest rates, thornton nh mortgage guide, central nh real estate financing
Jim Johnson — Real Estate Agent
58 NH Route 25A
Wentworth, NH 03282
P: (857) 249-7392
Licensed New Hampshire REALTOR® with Three Hills Real Estate Services
Broker Email: info@ThreeHillsRES.com
Broker Website: www.ThreeHillsRES.com
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