Rate Protection

In an adjustable-rate loan, a period of time during which one's interest rate may not rise if prevailing interest rates rise. However, rates may drop in that time period if prevailing interest rates drop. Rate protection is usually extended for 90 or 120 days. See also: Call protection.

Rate Protection

Protection for a borrower against the danger that rates will rise between the time the borrower applies for a loan and the time the loan closes.

Rate protection can take the form of a lock, where the rate and points are frozen at their initial levels until the loan closes, or a floatdown, where the rates and points cannot rise from their initial levels but they can decline if market rates decline. In either case, the protection only runs for a specified period. If the loan is not closed within that period, the protection expires and the borrower will have to either accept the terms quoted by the lender on new loans at that time or start the shopping process anew. See Locking the Loan.

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References in periodicals archive ?

FFO Before Impact of Settlement of Interest Rate Protection Agreements, Acquisition Costs and NAREIT Compliant Gain YTD

First Industrial Realty Trust Reports Third Quarter 2015 Results

Another PS850million has been earmarked to cover claims for mis-selling complex interest rate protection products to small firms.

Bank to put more cash in PPI fund

These loans provide a nine year term with incremental fixed step ups in rates as well as flexible prepayment penalties which provide the perfect hybrid borrowers are seeking through their long term fixed rate protection and amortization as well as the ability to prepay or refinance if market conditions warrant.

Fed continues QE3 purchases

CIOs intend to increase allocations to assets that offer higher total return potential, interest rate protection and/or an illiquidity premium, including equities, bank loans, real estate, commercial mortgage loans and private equity.

Insurance CIOs More Optimistic in 2013; Look to Increase Investment Risks

47bn, which Wireless said it intends to use to repay the outstanding amounts owed under its existing senior secured credit facility, to pay liabilities under related interest rate protection agreements, and to pay related fees and expenses.

MetroPCS Communications completes 6.250% and 6.625% senior notes sale

Many banks have mis-sold interest rate protection to thousands of small businesses and compensation could cost billions.

Don't trust the banks; You Say Email:letters@liverpoolecho.co.uk

BANKS are being put under pressure to speed-up compensating the scores of businesses in Wales thought to be struggling as a result of mis-sold interest rate protection products.

Pressure on banks to pay up to firms

Banks sold around 28,000 interest rate protection products to customers since 2001, the FSA added.

King: banks need a culture change; Governor's call amid new revelations

The FSA said that about 28,000 interest rate protection products had been sold to businesses since 2001, but did not give an estimate on how many customers would benefit from the settlement.

-Big banks agree to settle charges of mis-selling interest-rate protection products

Carnival Cruise Lines' Early Saver program offers as much as 25 percent off on bookings made up to three months prior to sailing for cruises of five days or less and up to five months prior to longer sailings, including rate protection in case rates later drop further.

Cruise Lines Lure Travellers With Never-Before Offers

Travelers no longer need to search and compare hotels to ensure that they are compliant with federal regulations: With more than 6500 FedRooms hotels world-wide, and with new hotels added daily, FedRooms provides choice while leveraging the federal government's overall buying power--ensuring guaranteed rates and rate protection now and in the future.

Federal and military travelers have the right to a better hotel rate with FedRooms

In addition, while 61% of interviewees rate protection against insiders as a future challenge, only 25% are prepared to back this up with an increased budget.