A rate lock is a lender’s gaurantee of a specific interest rate for a set period of time, typically from loan application to loan closing. Lock periods can range from 7 days to as long as 360 days during which time the borrower is protected against any interest rate fluctuations in the market. However, beware of the longer lock periods as they typically carry an interest rate slightly above the market average because they can be very costly to lenders.
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