What is a rate lock?

By Cambria Development September 17, 2018

In order to close a mortgage you must lock in a rate and loan program. Locking your interest rate means your lender guarantees the rate on your loan even if market rates change. Typically, the longer the lock on your mortgage, the higher the points or the interest rate of the loan. This is because the longer the lock, the greater the risk for the rates to increase prior to closing.