Finance
What is a 'lock-in' or rate lock in mortgage lending?
AA lender's right to change the interest rate before closing
BA commitment by the lender to hold a specified interest rate for a defined period✓ Correct
CThe borrower's obligation to use the same lender for future refinancing
DA penalty for paying off the mortgage early
Explanation
A rate lock is a lender's commitment to hold a specific interest rate and points for the borrower for a defined period (typically 30-60 days), protecting the borrower from rate increases while the loan is being processed.
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