Finance
In Minnesota, a 'lock-in' agreement with a lender protects the borrower from:
ARate decreases before closing
BRate increases before closing during the lock period✓ Correct
CLoan approval being rescinded
DProperty value decreases before closing
Explanation
A rate lock agreement guarantees the borrower the locked interest rate for a specified period (typically 15-60 days). This protects the borrower from rising rates during the application and underwriting process. If rates fall during the lock period, the borrower is typically locked into the higher rate unless a 'float-down' option was included.
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