Finance
In Tennessee, a lender who requires a 'rate lock' from a borrower guarantees:
AThat the property's value will not decrease before closing
BThat the interest rate will not increase during a specified period before closing✓ Correct
CThat the borrower's credit score will remain stable
DThat the loan will close by a specified date
Explanation
A rate lock guarantees the borrower that the interest rate will be held at the locked rate for a specified period (typically 30-60 days), protecting against rate increases before closing.
Related Tennessee Finance Questions
- In Tennessee, a 'biweekly mortgage payment' plan results in:
- In Tennessee, a 'purchase money mortgage' is one that:
- In Tennessee, a 'balloon mortgage' is characterized by:
- In Tennessee, a 'home equity line of credit' (HELOC) is secured by:
- A Tennessee homeowner has a $250,000 home and a $175,000 mortgage. What is the owner's equity?
- A Tennessee borrower has a gross monthly income of $5,500. The lender uses a 28% front-end ratio. What is the maximum monthly housing payment allowed?
- In Tennessee, a 'jumbo loan' is a mortgage that:
- A Tennessee borrower takes out a $180,000 mortgage at 6.5% interest. What is the first month's interest payment?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →