Rate lock

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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.
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Mortgage rate locking can easily change, and current rate locks only last from 30, 45 to 60 days.
"In order to win new client relationships and foster existing ones, our life insurance companies are offering earlier rate locks at the lowest spreads in the market place."
With the addition of Resitrader, Optimal Blue now supports USD 750 billion of transactions each year across its Digital Mortgage Marketplace, including nearly USD 600 billion of rate locks processed through its product and pricing engine and more than USD 150 billion of transactions through its hedging solution.
Additionally, rate locks on the giant CVS deal were reportedly set last week so there's little additional set up today.
Capital Senior also said that it recently executed early rate locks on refinancing transactions associated with two communities at an average interest rate of approximately 3.85%, both of which are expected to close by the end of the first quarter of 2015.
There are two easy solutions: a) Either your loan officers are issuing rate locks for loan periods that are way too short, or b) you need to tell your operations people to fix the problem.
The most common types of interest rate derivatives include interest rate swaps, interest rate caps, basis swaps, and rate locks. Let's take a look at each type.
* Chase Lock-Solid[SM] long-term rate locks up to 24 months with a float down option.
Rate locks will be delayed as mortgage bankers scurry to underwrite loans.
When lenders lock a rate in PriceMyLoan's automated underwriting and loan pricing engine, the ALPHA Interface automatically updates MCT's hedging model, providing a tangible reduction in risk by shortening the time period between rate locks and hedge positions.
Early rate locks or forward commitments are lender agreements that allow cooperatives to secure a desirable interest rate, yet delay closing until the pre-payment window has opened.
The Myers platform augments MGIC's eMagic[R] subsidiary as eMagic offers access to automated underwriting (AU) decisions, mortgage insurance, contract services, bundled services, rate locks, document imaging and delivery.