Did Your Rate Lock Expire Yesterday?

When the credit markets are closed during the weekend or on a holiday, typically mortgage companies don’t issue mortgage rates for that day. They’re closed. Some mortgage companies don’t close on all holidays however, Columbus Day comes to mind. The markets are closed on Columbus Day but many mortgage companies still have their doors open and the phones answered.

But what happens to your mortgage rate if your interest rate lock expires on a weekend, a holiday or a market closure in general?

If your rate expires on a weekend or holiday your lender will typically grant you an extension for the days lost. If your rate expired this past Sunday, then your lender will most likely extend your lock for one more day. For free. Otherwise, if a longer extension is needed and the delay is not the lender’s fault, then you can be expected to pay another 1/8th of a point to extend your lock for another 5-10 day period, provided you extend your rate before your lock period expires.

David Reed