Refinance Lock Period & Extensions

[Nick D.]

Im going through a Refinance that started December. I asked the lender to lock in my rate which was locked in for 30 days since the lender said we would finish the refi before the end of January.

The communication during this process has been “pulling teeth” to say the least. At no point during this refinance period was I informed that we would not close on time. I was never informed that the lender could only lock in the rate for 30 days without an extension period or even able to roll it over. I was never informed that the lock rate even expired. The lender has been dragging his feet during the process and we are still weeks away from closing.

I had a conference call with them today addressing all of these issues because I emailed them to make sure my rate was still locked. I never heard anything from the lender that it wasn’t until today. The loan has been floating since the end of Jan they said because their was no extension period nor even a mention that they did not have an extension period. I was locked in at a 4.45 rate & now the lender is telling me with the loan floating that it will be in the mid 5’s.

I wanted to ask what can I/ should I do to get the best possible results here since the lender has dropped the ball completely with communication throughout the process. We sent over paper work upfront and same day when it was requested. We asked up front to lock in the loan and I do understand the term sheets said 30 days but there was no mention that the lender was not extending the loan or rolling it into a new loan and now I have to pay the consequences of this.

The lender set the tone that this would be wrapped up no problem by the end of January and there has been no proactive talk from them saying that this refinance wouldn’t close by the end of January, never mind now going onto the end of February.

If you were in my shoes, what would you do and what else can I negotiate here. I really do not want to restart the refi process this late into it with how the market is, but I do not feel like this was handled appropriately at all. When you know the loan will not close in the timeline you state that it will, that should be communicated. I had No knowledge that this loan ( it’s for a 6 family) did not have an extension period with it and they only had 30day lock periods before it would float.

What should I negotiate in return and do I have any leverage at this point. Thanks