What is Rate Lock?

Welcome guest,

Rate lock means that your mortgage lender has set the interest rate on your loan for a specified time period. Within this period, if you are able to sign all legal papers and carry out the closing of the loan, then you will qualify at that rate of interest.

Rate quote implies the interest rates on a variety of loan programs offered for a specific time frame.

Rate quote helps you to compare lenders and choose the one asking for the least cost and monthly payment after doing some calculations.

Hi Guest,

Welcome to Mortgagefit discussion board.

As Adonis said rate quotes are different from a rate lock where the interest rate is set for a specific time.

Please go through this page to know more how rate locks work: http://www.mortgagefit.com/rate-lock.html

Do let me know if you have any other questions.

Thanks
Blue

Rate locks are also called as lock-in or rate commitment.

This page will be quite helpful for you to know about how long lock-ins can remain valid, what happens after lock-in period expires and many other vital points; http://www.federalreserve.gov/pubs/lockins/default.htm

Since the mortgage industry is volatile and the Rate of Interest offered by Lenders change on daily basis.

Also actual loan processing may take time so if a borrower selects a product and the rate on that particular day may not remain the same till the time his Loan papers get processed.

So Lender has provided certain Lock Days for his products which may vary from 7 Day - 1035 Days.


If you need more info on this pls lemme know.

Regards

Sagar