A mortgage rate lock is a financial tool that is provided by lenders to help control the fluctuation of mortgage interest rates during the processing of your loan. A ‘rate lock’ allows the borrower to freeze (i.e., lock in) the interest rate on a mortgage for a specified time period at the then current interest rate. This tool takes the guesswork out and allows the borrower to plan and budget without the risk of the market adjusting during the time the loan is being processed. Rate locks are generally available between 30 and 60 days but can sometimes be extended a little bit longer if an extended rate lock program is available.
Our Shea Mortgage team can provide you with basic understanding of loan options available and help you choose the loan that best fits your needs. Find out more on our blog: 8 Common Questions About Mortgage Rate Locks.