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 ?
James Cope, senior vice president and managing director, led the Walker & Dunlop team that facilitated a Freddie Mac Early Rate Lock offering by providing $19,000,000 to The Waterfront Apartments in Madison, Wisconsin.
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.
The borrower's objective was to secure an early rate lock in order to take advantage of low prevailing interest rates.
Use of Fannie Mae's Early Rate Lock [TM] feature more than doubled through midyear 2008.
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.
The previous accounting policy relates to the manner in which OFS accounts for changes in the fair value of interest rate lock commitments ("IRLCs").
Walker & Dunlop rate locked the loan 45 hours after receiving a signed application utilizing Fannie Mae's Early Rate Lock execution.
Said Stewart, "The quality of the sponsor, their management team, and the asset helped us offer an early rate lock that ultimately saved the borrower from paying a substantially higher rate.
Loan Love continues to provide their viewers with all that they will need to get the best loan with their new video explaining how to decide when to get a mortgage rate lock or float the loan rate instead.
The interest rate for this loan was rate locked early with a forward rate lock commitment.
The rate lock allows buyers to know precisely how much house they will be able to afford while offering potential savings that could represent hundreds of dollars monthly if rates were to rise during their home construction period.
Indymac utilizes its award-winning e-MITS(R) technology platform to facilitate automated underwriting, risk-based pricing and rate lock of home loans on a nationwide basis via the Internet at the point of sale.