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.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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