Finance
An Ohio lender's 'lock-in' of an interest rate for a borrower means that:
AThe rate can change daily during the lock period
BThe interest rate is guaranteed for a specified period, protecting the borrower from market rate increases during processing✓ Correct
CThe borrower cannot switch lenders after locking
DThe rate is locked in permanently for the life of the loan
Explanation
A rate lock guarantees the borrower a specific interest rate for a defined period (typically 30-60-90 days) while the loan is processed, protecting against market rate increases during that period.
Related Ohio Finance Questions
- The Truth-in-Lending Act (TILA) primarily protects consumers by:
- What is the difference between a fixed-rate and adjustable-rate mortgage (ARM)?
- Under the Truth-in-Lending Act (TILA), a borrower's right of rescission applies to:
- In Ohio, a 'wraparound mortgage' involves:
- What does the loan-to-value (LTV) ratio measure?
- A buyer in Ohio pays 2 discount points on a $250,000 loan. How much does the buyer pay in discount points?
- In Ohio, a mortgage is legally created when:
- A balloon mortgage in Ohio is characterized by:
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →