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On this episode of the Loans Elevated Podcast, your host Broch takes you through extended rate locks and why you should pay attention to them.
An extended rate lock is when you can lock in your mortgage rate for a specified amount of time, like 6 months or a year for example, which guards you against rates which continue to climb.
Broch gives us an example of a 6 month rate lock, which costs you 1 point (1% of whatever your loan amount was). Last week, the market shifted after someone in the fed said something, causing the market to shift by 1.3 points in one day, meaning you come out ahead. In the past month, the market has worsened by 3 points, so it’s clear these locks can be useful.
In another example, Broch shares your options of what you can do if you lock your rate and the rates begin to improve. You have the ability to cancel the lock and float the market for 30 days, and on the 31st day, you have the option to lock again. This does leave you exposed, however it can be beneficial if it goes your way, especially considering there’s no attachment to the original lock and no fee.
A final option Broch gives us is float down. This means you keep your lock for the whole 6 months, but you have the ability to float down one time within 30 days of closing, meaning you get about 70% of the market gains.
🎙 Loans Elevated Podcast
Clear, strategic conversations on mortgages, real estate, and home financing — designed to help you make confident, informed decisions without the hype.
Hosted by Loans Elevated, presented by The Lassig Team at CrossCountry Mortgage.
🔗 Resources & links: https://lassigteam.com
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Hosts:
Broch Lassig - Branch Manager | NMLS 340314
TJ Heidenreich - Sales Manager | NMLS 1802412
Ryan King - Loan Officer | NMLS 1870771
Branch NMLS 2048956
Equal Housing Opportunity.
All loans subject to underwriting approval. Certain restrictions may apply.
CrossCountry Mortgage, LLC | NMLS 3029
www.nmlsconsumeraccess.org
This podcast is for educational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional regarding your individual situation.
