Finance
A 'lock-in' or rate lock on a New Hampshire mortgage means:
AThe borrower cannot refinance for five years
BThe lender guarantees the interest rate for a specified period during the loan approval process✓ Correct
CThe property cannot be sold while the lock is in effect
DThe rate is fixed only for the first month of the loan
Explanation
A rate lock is a lender's commitment to honor a specified interest rate for a set period (often 30-60 days) while the borrower's application is processed. It protects the borrower from rate increases before closing.
Related New Hampshire Finance Questions
- Under the Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited in a NH residential mortgage transaction?
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