What Is a Rate Lock and Why Is It Important for NH Homebuyers?
- Jim Johnson
- 3 days ago
- 2 min read
🏡 What Is a Rate Lock and Why Is It Important for NH Homebuyers?
When you’re buying a home in New Hampshire, mortgage interest rates can move daily — sometimes even multiple times per day. A rate lock protects you from those changes, ensuring your interest rate stays the same from the time you lock it until closing.
Here’s everything NH buyers need to know.
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What Is a Rate Lock?
A rate lock is an agreement between you and your lender that guarantees a specific mortgage interest rate for a set period of time — usually 30, 45, 60, or 90 days.
Once locked:
✔ Your rate can’t go up
✔ Your monthly payment is protected
✔ You’re shielded from market volatility
This helps you budget confidently while your loan moves through underwriting.
⭐
How Long Does a Rate Lock Last?
Common rate-lock periods include:
30 days
45 days
60 days
90 days
Longer locks provide more security but may cost slightly more.
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Why Should NH Buyers Lock Their Rate?
✔ Protects you from rising interest rates
If rates jump, your payment stays the same.
✔ Gives financing stability
You’ll know exactly what your loan terms will look like.
✔ Prevents surprises before closing
NH buyers often deal with underwriting, inspections, and appraisal delays — a lock keeps your rate safe during all of it.
⭐
Can Rates Ever Go Down After You Lock?
Yes — but only if:
Your lender offers a float-down option, or
You unlock and relock, which may involve fees
A float-down allows you to take advantage of a lower rate if the market drops during your lock period.
Not all lenders offer this, so ask upfront.
⭐
When Should You Lock Your Rate?
Most NH buyers lock their rate:
After signing the Purchase & Sales Agreement
When they want to secure a monthly payment
If rates begin trending upward
Once they feel confident in their lender and loan program
Your lender can help you time the lock based on current rate trends.
⭐
What Happens If Your Rate Lock Expires?
If the loan takes longer than expected, you may need:
A rate-lock extension, or
A new rate lock at current market rates
Extensions sometimes require an additional fee.
🏡
Final Thoughts
A rate lock is an essential tool for NH homebuyers. It protects your interest rate, stabilizes your monthly payment, and prevents last-minute surprises before closing. With rates constantly changing, locking your rate at the right time can save you thousands over the life of your loan.
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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