Mortgage Rate Lock

A mortgage rate lock is an agreement between a borrower and lender that guarantees a specific interest rate for a set period, typically during the loan approval process. This protects the borrower from potential rate increases before closing. If market rates rise, the borrower still secures the lower, locked-in rate; if rates fall, some lenders may offer a float-down option. Rate locks provide stability and predictability in your mortgage payments, ensuring that your interest rate won't change unexpectedly while your home purchase or refinancing is finalized.