This is a YouTube video titled "Lock Extensions" containing a detailed explanation about how interest rate lock extensions work in the mortgage process, including the impact of delays and associated fees. The content is presented by a single speaker providing financial and real estate insights.
When locking in an interest rate, it's important to know how lock extensions work. So oftentimes people need about 30 days to close their home. So that's why interest rates are oftentimes locked for 30 or 45 days. Now if there's a non lender induced reason that the loan is delayed between buyers and sellers, well, there are lock extension fees that comes from the bond market. When mortgages are closed, they turn into a bond. There's investors that buy them as a bond. So if those investors are late on being able to invest, well, they do charge a fee to extend that rate. It's usually a per day cost on that. So if it's not a super low a long time, it's not a super costly thing. But if it's a long term extension, well then we, it kind of poses the question on do we let that rate expire, you then have to wait 30 days to re lock it back in and you're subject to the market at that time or do we pick it up and start all over? With a brand new lender we can do that as well. But just it's a new underwrite though. So there's real things. The, the rule of thumb is everything is time sensitive and delays do unfortunately cost from the market.
