Rate-lock timing scenario comparison

How this calculation works

Method and assumptions

Use equal post-closing loan holding periods at locked, lower, baseline and higher rates. Add lock-specific fees or the separately entered preclosing delay costs and later fees to interest costs; report ending balances separately.

Worked example

For $3 million over a 60-month post-closing hold with 30-year amortization, locking at the default 6.5% plus a $15,000 lock cost produces $961,051.77 nominal financing cost. Waiting two months costs $20,000 before closing. If the later rate is also 6.5%, total cost is $966,051.77, or $5,000 more. At 5.5% it is $815,838.31; at 7.5% it is $1,117,109.21. These are scenarios, not rate predictions.

Before using the result

Know the boundaries

• Educational scenario, not a quote, commitment, approval, appraisal or payoff statement.
• Defaults and thresholds are editable illustrations; the executed documents and lender underwriting control.
• Scenarios are not interest-rate forecasts. Equal post-closing holding periods are compared without discounting; loan timing and business cash flows can change the decision.