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The tutorial discusses the concept of a rate lock in lending, explaining its significance and potential pitfalls. When a lender locks a rate, it is typically for a specific duration; for example, a 30-day lock starting on April 1st would expire on April 30th unless extended. Extensions can incur costs, which could be the borrower’s responsibility. The presenter suggests that if an extension is needed due to lender error, they would cover the costs, but if it’s due to circumstances beyond their control, such as a seller request, the borrower might bear the expense. The emphasis is on the importance of understanding both the rate lock process and the implications of possible extensions.