What is a rate lock?
A rate lock is a lender’s guarantee of an interest rate for a set period of time, usually between loan application and loan closing. A lock period can range anywhere between 15 days to 90 days during which time you, as a borrower, are protected against rate fluctuations. Rate locks can be expensive for lenders, and so it is usually true that the longer the lock-in period, the higher the cost is for you. Our experienced loan specialists can help you understand which choice may be better for you.
This lock gives you protection from financial market fluctuations in interest rates by setting the range of pricing available to you. Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked for loans with your specific transaction characteristics and your credit profile. While locking does not guarantee that a specific rate will apply, it does ensure that your loan pricing will not be affected for a set period of time by changes in financial market conditions. For more information, please refer to the Loan Pricing Disclosure.
A rate lock is the lender’s guarantee that the interest rate on the mortgage loan will not change for a specified amount of time. The specified amount of time is either thirty, forty-five, sixty or ninety days. A rate lock beyond 90 days is available as well. The rate lock puts the borrower at ease that his or her rate will remain at the quoted percentage during that specified time period. Once you’ve locked your rate, the interest rate cannot increase if the market worsens or decrease if the market improves.
A rate lock means that an interest rate is locked in and won’t vary for a set period of time, ranging from 15 to 90 days. This typically happens between loan application and loan closing. Rate locks are usually expensive for lenders, so the shorter the lock-in timeframe, the less expensive it will be for you.
