Rate Lock

When you are looking to purchase a home, it is important that the interest rate on your mortgage remains as low as possible. One way lenders help guarantee this stability for borrowers who apply and qualify before rates rise again after an economic downturn is through lock-in agreements or "rate locks." When locked in at one particular time of day with all other variables remaining constant, locking yourself into the current market's lowest available APR can be crucial when trying to keep monthly payments lower than they would otherwise have been.