Agency early rate-lock options extend up to 180 days. Fees run 1 to 5 basis points per month of early lock window, plus a non-refundable rate-lock deposit of 1 to 2 percent of loan amount that is forfeited if the borrower fails to close on stated terms.
When does early lock fit?
Construction take-outs (locking permanent rate before completion), 1031 exchanges with fixed identification deadlines, and any rate-sensitive timeline where the borrower needs certainty. Sponsors who can absorb a 30 to 60 day rate window typically use the lender's standard lock; early lock is for longer windows.
What about delivery flexibility?
Both agencies build in a brief delivery window beyond the locked-in close date (5 to 15 calendar days) to absorb minor closing slippage without forfeiting the deposit. Beyond that window, the lender is not obligated to deliver the locked rate and the deposit is forfeited.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current
- Optigo lending program disclosures · Freddie Mac Multifamily · current