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What does an extended rate lock protect?
An extended rate lock protects the agreed interest-rate terms for the period stated in the lock agreement, as long as its conditions are met. It does not remove underwriting, appraisal, property, documentation, or completion requirements.
What should the written lock agreement explain?
The written agreement should explain the locked terms, expiration, cost or deposit, extension policy, borrower and property conditions, and any float-down feature. Ask what happens to fees if the loan changes or the home is delayed.
How should the lock date match the build schedule?
The lock date should be based on a realistic completion and closing schedule, not only an optimistic target. Consider permitting, inspections, utilities, certificate-of-occupancy timing, final appraisal work, and the builder’s history of schedule updates.
What happens if construction is delayed?
If construction is delayed beyond expiration, the lock may need an extension under the agreement’s current policy. Cost responsibility and available terms can vary, so the buyer, builder, Realtor, and lender should discuss timing before the deadline.
Frequently asked questions
Questions borrowers ask about new construction and builder financing
Does every lender offer an extended lock?
No. Availability, eligible products, property rules, duration, and terms vary.
What is a float-down?
A float-down is a defined feature that may allow different terms if market rates improve, subject to the written agreement. It is not automatic unless stated.
Can the lock transfer to another property?
Do not assume it can. Property changes are governed by the lock agreement and program.
Should every new-construction buyer lock early?
No single timing decision fits every buyer. Risk tolerance, schedule confidence, costs, and available terms should be reviewed.
Primary references
Sources used for “How Extended Rate Locks Work for Florida New Construction”
- What is a lock-in or a rate lock on a mortgage?Consumer Financial Protection Bureau · Accessed August 12, 2026
- Loan Estimate explainerConsumer Financial Protection Bureau · Accessed August 12, 2026
Source set last reviewed August 12, 2026. Property, program, and lender details should be rechecked for the current transaction.