Finance
Vermont's 'interest rate lock' protects the borrower by:
APermanently setting the rate for the life of the loan
BGuaranteeing the specified interest rate for a set period (typically 30-60 days) while the loan is being processed✓ Correct
CAllowing the rate to float during the loan term
DProviding a rate below the market
Explanation
A rate lock commits the lender to provide the specified interest rate for a defined period (lock period), protecting the borrower from rate increases during the loan processing period. Locks typically run 30-60 days.
Related Vermont Finance Questions
- A Vermont seller who provides financing to a buyer is known as a:
- A Vermont blanket mortgage covers:
- Vermont's 'mortgage servicer notification' requirement means borrowers must be notified when:
- Vermont's 'mortgage discharge' must be recorded within how many days of the mortgage being paid in full?
- What is the primary purpose of Private Mortgage Insurance (PMI) in a Vermont residential mortgage?
- Vermont property owners who fall behind on their mortgage should be aware that Vermont's foreclosure redemption period allows:
- Vermont borrowers have a 3-day right of rescission under TILA for which type of loan?
- Under TRID (TILA-RESPA Integrated Disclosure), the Closing Disclosure must be provided to the borrower at least how many business days before closing?
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →