Finance

A North Dakota lender's 'lock-in period' on an interest rate means:

AThe borrower must close within the lock period or the rate may change✓ Correct
BThe rate is permanently fixed for the entire loan term
CThe borrower cannot refinance for the lock period
DThe rate is locked for 30 years

Explanation

A rate lock guarantees the borrower a specific interest rate for a defined period (commonly 30, 45, or 60 days). If closing does not occur within the lock period, the rate may change.

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