Rate lock

Rate lock

An agreement between the mortgage banker and the loan applicant guaranteeing a specified interest rate for a designated period, usually 60 days.

Rate Lock

An agreement between a mortgage bank and a potential borrower promising that that the bank will not change the proposed interest rate on a loan that has not been concluded for a certain period of time. The rate lock usually lasts for 60 days.
References in periodicals archive ?
Most lenders don't offer a rate lock at pre-approval.
Dwight Capital utilized its Early Rate Lock ("ERL") program to eliminate interest rate risk for the owners by rate locking the transaction upon engagement.
Additionally, the loan featured a 6-month forward rate lock that allowed the borrower to eliminate near term interest rate risk and minimize the prepayment penalty of a maturing loan.
Beech Street was able to expedite the underwriting process and rate lock the loan within a month of signing up the deal.
Reflecting the financial strength of the borrower, we were able to provide full-term, interest-only, and lock in a low interest rate through Fannie Mae's Early Rate Lock [ERL] program," said Kimble.
For applications received before January 1, 2004, in which the rate lock occurred before January 1, 2004, lenders may report NA (Not Applicable) for rate spread.
According to Reed, "We were able to deliver a credible term sheet for a forward rate lock with extremely competitive terms.
Walker & Dunlop worked with Keystone Commercial Capital on behalf of the borrower, Blair Group, to rate lock the loan 15 days after receiving the signed loan application from the borrower.
The borrower's objective was to secure an early rate lock in order to take advantage of low prevailing interest rates.
M2 EQUITYBITES-June 10, 2011-ELS executes rate lock agreements on USD250m in secured CMBS financing(C)2011 M2 COMMUNICATIONS http://www.
Use of Fannie Mae's Early Rate Lock [TM] feature more than doubled through midyear 2008.
The previous accounting policy relates to the manner in which OFS accounts for changes in the fair value of interest rate lock commitments ("IRLCs").