When you apply for a fixed-rate home loan, the interest rate is an important factor. The rate lock feature allows borrowers to secure a specific interest rate for a certain period of time, typically up to 90 days. This means that even if interest rates in the market fluctuate during that period, your interest rate remains locked at the agreed-upon rate.
Rate locks are beneficial because they provide stability and protect borrowers from potential rate increases while their loan application is being processed. This feature is particularly valuable when you anticipate that interest rates may rise before your loan settles
It's important to note that rate locks are typically time-limited and often have associated costs or conditions. The exact terms and conditions of rate locks can vary among lenders, so it's essential to discuss this feature mortgage broker to understand how it works and any potential fees or requirements involved.
