mortgage rate lock

Definition

Allows a borrower to lock the interest rate of a loan at the current market rate upon agreement with the lender over a stipulated period of time. This agreement binds the lender and borrower; a lock deposit proves that both parties intend to follow through with the agreement. In addition, it protects either party if one of the parties chooses to break the agreement, in most cases, the borrower.
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mortgage rate mortgage recast