Loan Lock

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Dictionary Says

Definition of 'Loan Lock'

The securing of a specified interest rate on a mortgage that is in the process of being approved. A loan lock establishes the interest rate that a borrower will pay as long as the loan closes before the end of the lock period. Lock periods typically last from 30 to 60 days, though in markets where the loan approval process is slow, the lock period can last as long as 90 days.

Investopedia Says

Investopedia explains 'Loan Lock'

Borrowers like lock periods because they take away the uncertainty associated with constantly fluctuating mortgage rates. Particularly with expensive homes, a small increase in interest rates can mean a big change in monthly payment. This can sometimes mean the difference between an affordable mortgage payment and an unaffordable one.

Search results for

'Loan Lock'

  • Got A Good Mortgage Rate? Lock It Up!

    http://www.investopedia.com/articles/pf/08/lock-mortgage-rate.asp
    ... If the loan fails to close prior to the end of the lock-up period, the guaranteed
    rate expires, and any deposit that you made may be forfeited to the lender. ...

  • Options and Futures: You Already Trade Them - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0210/Options-and-Futures-You-Already-Trade-Them.aspx
    ... This price will often be in the form of a slightly above-market interest rate, upfront
    fees on the loan, or lock-out periods during which the loan cannot be ...

  • Which is better, a fixed or variable rate loan?

    http://www.investopedia.com/ask/answers/07/fixed-variable.asp
    ... Generally speaking, if interest rates are relatively low, but are about to increase,
    then it will be better to lock in your loan at that fixed rate. ...

  • IPO Basics: Don't Just Jump In | Investopedia

    http://www.investopedia.com/university/ipo/ipo2.asp
    ... Ninety days is the minimum period stated under Rule 144 (SEC law) but the lock-up
    specified by the underwriters can last much ... $30K Home Equity Loan, 5.74%, 5.77% ...

  • The Economics Of A Successful Marriage - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0411/Apply-Economics-For-A-Successful-Marriage.aspx
    ... Loss Aversion In the stock market, some investors hold on to bad stocks to avoid
    admitting defeat. By selling a losing position they lock in a loss. ...

  • 5 Things To Do Before Interest Rates Go Up - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0710/5-Things-To-Do-Before-Interest-Rates-Go-Up.aspx
    ... is true that the interest rates for mortgages and car loans do not move in
    lock-step with ... If rates move up 1% and you are looking at a 30-year loan for $175,000 ...

  • Watch Out For "Junk" Mortgage Fees

    http://www.investopedia.com/articles/mortgages-real-estate/08/mortgage-closing-costs-fees.asp
    ... the following categories: Application fee; Underwriting fee; Mortgage rate
    lock fee; Loan processing fee; Broker rebate. If any of these ...

  • Score A Cheap Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/08/mortgage-costs.asp
    ... each lender should be tied to a specific interest rate for a specific loan amount,
    and ... the time the quote is provided to the time you're ready to lock it in ...

  • 6 Security Apps You Should Know About - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/6-Security-Apps-You-Should-Know-About.aspx
    ... The simple ones allow owners to locate their unit via GPS, lock it against unauthorized
    use or even wipe it clean of all information that could be used in ...

  • Pre-Qualified Vs. Pre-Approved - What's The Difference?

    http://www.investopedia.com/articles/basics/07/prequalified-approved.asp
    ... You'll also have a better idea of the interest rate you will be charged on the loan
    and, in some cases, you might be able to lock-in a specific rate. ...

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