Question:
What is rate lock and rate protection?
Answer:Rate lock or rate protection are convenient mortgage features that allow you to have a guaranteed maximum interest rate for a fee that is credited back to you at closing.
Rate Protection Features
Rate protection goes with rate protection period - within the rate lock term (commonly 30, 45, 60, 90, or 120 days) a borrower will get the lower rate at the time of closing provided rates drop; or, if rates go up, the borrower has secured a rate that cannot be exceeded.
Your closing date cannot extend over the paid and locked-in period for the rate protection to hold. Rate locks go with a rate lock fee - it will be credited back to you if you close the loan as promised.
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Common misspellings: mortage and morgage