Finance
What is the purpose of a Massachusetts homebuyer's 'rate lock'?
ATo lock in a sale price for 30 days
BTo guarantee a specific interest rate for a defined period while the loan is being processed✓ Correct
CTo lock the borrower into a specific lender
DTo freeze property taxes for first-time buyers
Explanation
A rate lock guarantees the borrower a specific interest rate for a defined period (e.g.
Related Massachusetts Finance Questions
- A Massachusetts lender 'charges off' a mortgage. This means the lender has:
- Under RESPA, a Massachusetts mortgage lender must provide the Closing Disclosure to the borrower at least:
- In Massachusetts, 'points' paid by the buyer at closing to reduce the mortgage interest rate are called:
- Points paid on a mortgage to buy down the interest rate are also called:
- The purpose of a 'mortgage commitment letter' in a Massachusetts transaction is:
- An FHA loan requires a minimum down payment of:
- A Massachusetts FHA loan requires a minimum down payment of:
- A Massachusetts lender requires a property appraisal for a purchase loan. The appraisal comes in at $490,000 but the purchase price is $520,000. The lender will typically base the loan on:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →