Finance
When a borrower 'locks in' a mortgage interest rate, this means:
AThe borrower agrees to use only that lender for all future loans
BThe lender guarantees the specified interest rate for a set period while the loan is processed✓ Correct
CThe interest rate is permanently fixed for the entire loan term
DThe borrower pledges additional collateral to secure the rate
Explanation
A rate lock is a lender's commitment to hold a specific interest rate for the borrower for a defined period (typically 30-60 days) while the loan is processed. If interest rates rise during the lock period, the borrower still gets the locked rate. Rate locks protect borrowers from rate increases between application and closing.
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