The process by which a lender commits to lend at a particular rate as long as the mortgage transaction closes within a specified time period. The document which specifies the terms of the lock-in is called a rate commitment or lock-in agreement.
A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
A guarantee that the rate in effect when you apply for the loan will be the final rate when you close the loan. The rate lock-in is good for a specific time, typically 45 to 60 days from the date of the lock-in.
The ability to lock-in the interest rate at today=s rate before the closing date.
An interest rate which is guaranteed to remain the same from the time of your loan application through the time your loan is approved. Whether your loan's index rises or falls during that period, you pay the rate which was current at the time of application. Not all loan applications include a rate lock-in clause.
