Finance
What is the purpose of a 'rate lock' in Connecticut mortgage financing?
ATo lock in the property purchase price
BTo guarantee the interest rate quoted will not increase during a specified period while the loan is processed✓ Correct
CTo prevent the borrower from refinancing for a set period
DTo lock in the property tax rate
Explanation
A rate lock is the lender's guarantee to hold a specific interest rate for a defined period (typically 30-60 days) while the loan is being processed and underwritten, protecting the borrower from rate increases.
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