A rate lock is the lender promising to honor a specific interest rate and price for a specific number of days. That is the whole product. Everything that goes wrong with locks goes wrong at the edges of that sentence: which days, which price, what counts as a change to the file, and what happens on day 46 of a 45-day lock.
Richmond buyers hit those edges more often than they expect, because the contract timeline and the lock calendar are set by different people.
In this post: what a lock commits, how lock length is priced, the eighth-of-a-point arithmetic on a Richmond-median loan, float-downs, extensions and relocks, lining a lock up with a local contract, and new construction.
What a lock commits, and what it does not
A lock binds the lender to a price. It does not bind you to close, and it does not freeze the rest of your file. The price was quoted against a set of characteristics: loan amount, property type, occupancy, credit score, loan-to-value, term and program. Change any of those and the loan re-prices even though the lock is still technically valid.
You will see the lock status on page one of your Loan Estimate. The Consumer Financial Protection Bureau Loan Estimate explainer walks through that box, and it is worth reading before you sign anything, because a Loan Estimate that says the rate is not locked is telling you the number on the page can move.
There is also a timing rule with teeth. Under Regulation Z, 12 CFR 1026.19(e)(3)(iv)(D), when points or lender credits change because the rate was not locked at the time the original disclosures went out, the creditor must deliver a revised Loan Estimate no later than three business days after the date the rate is locked, showing the revised rate, the points, the lender credits and any other interest-rate dependent charges. If you lock and no revised Loan Estimate arrives inside three business days, that is a question to ask, not a formality to ignore.
Why 60 days costs more than 30
A lock is an option the lender writes and hedges. The longer it runs, the more it costs to hedge, and that cost shows up as a slightly worse rate or slightly higher points rather than an invoice. Lenders quote it in points, and points are a percentage of the loan amount, so the only way to understand a quote is to convert it into dollars.
There is no public index of lock extension pricing, and it moves daily and differs by lender, so we are not going to invent an average. Here is the arithmetic instead, on a $360,000 loan, which is 80 percent of the August 2026 Richmond Metro median sold price.
| Price adjustment | Cost on $360,000 | Typical use |
|---|---|---|
| 0.125 point | $450 | Short extension, or the step from a 30-day to a 45-day lock |
| 0.250 point | $900 | Longer extension, or the step to a 60-day lock |
| 0.375 point | $1,350 | Stacked extensions on a stalled file |
| 0.500 point | $1,800 | Extended lock on a build, or a float-down feature |
| [DATA NEEDED: median price per square foot, August 2026, by area] | ||
Ask your loan officer for the cost of each lock length in points on the day you lock, then multiply. A quarter point sounds like nothing and is $900. Our preferred lender list is where to start if you want three quotes on the same day, which is the only way to compare lock pricing honestly.
The eighth-of-a-point arithmetic
An eighth means two different things depending on who is talking. An eighth in rate is 0.125 of a percentage point. An eighth in price is 0.125 of a point in fee. They are not the same size.
| Rate | Monthly principal and interest | Difference from the row above |
|---|---|---|
| 6.250% | $2,217 | – |
| 6.375% | $2,246 | $29 |
| 6.500% | $2,276 | $30 |
| 6.625% | $2,305 | $29 |
So an eighth in rate is about $30 a month on this loan, roughly $355 a year, and about $10,600 in additional interest if the loan is carried the full 30 years. An eighth in price is $450 once, at the closing table. That comparison is the whole decision on extensions: paying $450 to protect a rate that is $30 a month better pays for itself in about fifteen months. Paying $1,350 to protect the same rate does not, if you plan to refinance inside four years. Put your own numbers into the mortgage calculator before you agree to anything.
The comparison also explains why a temporary or permanent buydown negotiated from the seller is often worth more than a longer lock. We work through that trade in our post on seller-paid rate buydowns in Richmond.
Float-downs, and what they are actually worth
A float-down lets you take a lower rate if the market improves after you lock. It is neither automatic nor free. Typical conditions: a minimum improvement in market rate, one exercise only, and a deadline a set number of days before closing. The cost sits inside the price of the lock, so you pay today for an option you may never use.
Compare the cost in dollars against the saving it could produce. If the float-down costs a quarter point, $900 on our $360,000 example, and requires a quarter percent improvement to trigger, the saving is about $59 a month: payback in roughly fifteen months if the market cooperates, and $900 gone if it does not. The CFPB tool for exploring interest rate scenarios is the place to test what a rate move does to a payment before buying the option.
Extensions, relocks and worst-case pricing
Blow the lock date and you have three paths, in descending order of pleasantness.
Extension. Pay a price adjustment to keep the same rate for more days. Most lenders sell extensions in blocks of 7, 15 or 30 days. This is the normal outcome for a file that is one week behind.
Relock. Once a lock expires, most lenders price a relock at worst case: the worse of your original price and current market, often with a penalty. Rates rose, you get the higher rate. Rates fell, you do not get the benefit. Worst-case pricing exists so borrowers cannot let locks lapse strategically.
Renegotiate. Some lenders will re-price a badly aged lock to keep the loan. This is discretionary, not a right.
The question that matters is who pays when the delay was not yours. Good lenders absorb extensions caused by their own underwriting or processing turn times. Delays from title work, an appraisal reinspection, a seller repair or a document you sat on get charged to you. Get the policy in writing the day the file slips, not the day before settlement.
Lining a lock up with a Richmond contract
Set lock length against the real calendar, not the settlement date on the contract. Work backward: appraisal ordered and returned, conditions cleared, final approval, closing disclosure delivered at least three business days before consummation, settlement. A normal file fits inside 30 days. Appraisal delays and repair negotiations are what break it.
Local market speed is a real input here. In August 2026 the Richmond Metro median days on market was 22, with 1.8 months of supply, which means many contracts are written fast and settlement dates are set optimistically.
| Area | Closed sales | Median days on market | Median sold price | Months supply |
|---|---|---|---|---|
| Richmond Metro | 871 | 22 | $450,000 | 1.8 |
| Henrico County | 229 | 18 | $425,000 | 1.6 |
| Chesterfield County | 372 | 22 | $453,975 | 1.9 |
| Richmond City | 163 | 26 | $403,500 | 1.4 |
An appraisal under contract price is the most common cause of a blown lock: it triggers a renegotiation, a possible reconsideration of value, sometimes a second appraisal. If you are buying in a fast segment like Short Pump or the Fan, where escalation is common, read our guide to appraisal gap coverage before you write, because the gap language you choose determines how much lock risk you are taking.
Get the Richmond closing-timeline checklist
The lock length question is a calendar question. Our one-page Richmond closing-timeline checklist lays out every deadline between ratification and settlement, in order, with the days each step usually takes here and the points where locks most often break. Ask us for the closing-timeline checklist and we will send it over.
New construction is a different problem
A standard 30 or 45 day lock is useless on a house that is six months from a certificate of occupancy. Builders in Midlothian and across the new construction market around Richmond routinely work on six to twelve month timelines, and the financing answer is one of three things: an extended lock priced for the build period, a builder forward commitment through an affiliated lender, or a deliberate decision to float and lock once the drywall is up.
Extended locks are expensive and usually carry a deposit credited at closing. Builder affiliated lenders often price aggressively because the incentive is bundled with closing cost credits, which is worth comparing against an outside quote on the same day. Repeated 15-day extensions on a build that keeps slipping is how buyers accidentally spend a full point.
If you are still choosing how to pay for the house rather than which lock to buy, we cover the neighboring decisions in our posts on recasting versus refinancing, VA loans in Richmond, and Virginia Housing loans for first-time buyers.
Frequently asked questions
Can I lock a rate before I have a ratified contract in Richmond?
Most lenders require a property address and a ratified contract before they will lock a purchase loan, because the lock is priced against a specific loan amount, property type and closing date. Some offer a pre-approval float or a lock-and-shop program tied to a target price. Ask your lender which they offer before you write an offer, not after.
Does locking a rate cost money up front?
Usually the cost is built into the price rather than charged as a separate fee. A longer lock is priced with a slightly worse rate or slightly higher points instead of an invoice. Some lenders do charge a refundable deposit on extended new-construction locks, which is credited at closing. Ask for the cost in points, then convert it to dollars.
What happens to my rate if the appraisal comes in low?
The rate itself is unaffected, but the loan-to-value can change if the price is renegotiated or the loan amount drops, and loan-level price adjustments are tied to loan-to-value and credit score. A change in loan amount or down payment can re-price the loan even inside a valid lock. Tell your loan officer before you agree to an amended price.
Is a float-down automatic if rates fall?
No. A float-down has to be purchased or included in the program up front, and it usually has conditions: a minimum improvement in market rate, a single exercise, and a deadline a set number of days before closing. Without one, a falling market does not help you unless you cancel and relock at worst-case pricing.
Who pays the extension fee when the delay is the lender’s fault?
That depends on the lender’s own policy, and reputable lenders absorb extensions caused by their own processing or underwriting turn times. Delays caused by the title work, the seller, an appraisal reinspection or a buyer document request are generally charged to the borrower. Ask the question in writing the day the file slips, not the day before closing.
How much does an eighth of a point actually change my payment?
On a $360,000 loan, which is 80 percent of the August 2026 Richmond Metro median of $450,000, an eighth of a percentage point is about $30 a month. At 6.375 percent the principal and interest is roughly $2,246 and at 6.500 percent it is roughly $2,276. Over a full 30-year term held to maturity that gap is about $10,600.
Should a buyer in a new construction contract lock at all?
Not with a standard 30 or 45 day lock if the home is months from a certificate of occupancy. Builders in Short Pump and Midlothian routinely work on six to twelve month timelines, and that calls for an extended lock, a builder forward commitment or a deliberate decision to float and lock later. Locking too early and extending repeatedly is the expensive version.
Does a rate lock survive a change of loan program?
No. Switching from conventional to FHA or VA, changing the term, changing occupancy from primary to second home, or moving the loan amount outside the locked tolerance all re-price the loan. The lock is a price for a specific set of file characteristics, so any change to those characteristics reopens the price.
One page, every deadline. Request the Richmond closing-timeline checklist and set your lock length against a real calendar instead of a hopeful settlement date.
This article is general information, not legal or financial advice. Lock terms, extension fees and float-down conditions are set by each lender in its own lock agreement. Read yours, and talk to a Virginia real estate attorney about the contract deadlines a lock has to fit inside.
