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Lock-In Rate

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What is a Lock-In Rate?

A mortgage loan rate lock is a formal agreement between a lender and borrower that allows the borrower to lock in an interest rate provided the borrower closes by a set deadline. Did you know that rate locks protect borrowers from market fluctuations?

This is because as the lender underwrites and then processes your loan over a time period of several weeks, interest rates may move up or down. Note that mortgage rates change as frequently as many times a day.

Examples of Lock-in Rate

  • Example 1: Lock-in rate for 15 days
  • Example 2: Lock-in rate for 30 days

Here’s Investopedia’s definition of a Lock-In Rate .

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