Finance
What is an 'interest rate lock' in an Oregon mortgage transaction?
AA legal agreement preventing the buyer from obtaining other loan quotes
BA commitment from the lender to hold a specified interest rate for a defined period while the loan is processed✓ Correct
CA mechanism that prevents the interest rate from changing after the first year
DA borrower's agreement to keep their savings at the lending institution
Explanation
An interest rate lock (rate lock) is a lender's commitment to honor a specific interest rate and terms for a specified period (typically 30–60 days) while the loan is processed and underwritten. This protects borrowers from rate increases during processing. If closing extends beyond the lock period, the borrower may need to pay to extend the lock or accept the current market rate.
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