Finance
In Minnesota, an interest rate 'lock' in a mortgage transaction means:
AThe interest rate cannot change after the loan is funded
BThe lender guarantees the offered interest rate for a specified period while the loan is processed✓ Correct
CThe borrower is locked into using that lender
DThe interest rate is locked to the prime rate permanently
Explanation
An interest rate lock guarantees a specific interest rate for a defined period (typically 15-60 days) while the loan is being processed and closed. This protects the borrower from rate increases.
Related Minnesota Finance Questions
- A VA loan in Minnesota is available to:
- A Minnesota homebuyer's loan is approved 'subject to' conditions. Which condition would NOT typically be required by a lender?
- In Minnesota, a 'jumbo loan' refers to a mortgage that:
- What is the Minnesota homestead classification, and how does it benefit property owners?
- A Minnesota borrower's front-end ratio (housing ratio) of 28% is calculated by dividing:
- In Minnesota, which of the following is TRUE about the Minnesota Homestead Credit Refund (formerly the property tax refund)?
- The concept of 'amortization' in mortgage lending means:
- Under the Community Reinvestment Act (CRA), how does the federal government measure a bank's compliance in Minnesota?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →