Rate Lock Extension Question

[Account Closed]

Hey BP, long time lurker and first time poster. I've always been able to find the answer I need without reaching out, until now!

I'm under contract on a triplex "house hack" using the VA Rehab Loan . I am not going to be able to close by the time the rate lock expires. The property is in a historical district and had to be rezoned which pushed us outside of our closing window. The rate expires on 1/24, and we won't be able to close until around 2/5. Rates have gone down since I locked in December. My loan officer is saying that my best option will be to pay ~$1000 to extend my current rate. They're recommending extending for a month because we're not 100% sure on the closing date. I've had to pay to extend rates on deals in the past, but that was when rates were going up. It doesn't make sense to me that I need to pay $1000 to keep a higher rate.

I've done two buy and hold deals with this company in the last couple months. One was a duplex and one was a quad. Both were financed with traditional financing. I'm also looking to sell four SFHs this year and 1031 into small multifamily properties. I like working with them a lot, but I think my best option here might be to move to a different company for this VA Rehab Loan?