Definition
Agreement locking mortgage rate for specified period (typically 30-60 days), protecting against rate increases.
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Rate locks prevent rate increases if market rates rise. Locks are essential during rate volatility. Lock periods are typically 30-60 days; longer locks cost more (higher rates). Market conditions determine lock recommendations.
Pro Tip
Lock rates when satisfied; don't risk trying to get lower rates after locking in satisfactory rate.
Example
Rate lock at 5.5% for 45 days protects borrower if market rates rise to 5.8% before closing