What is a rate lock?
The Bankrate.com financial term of the day is: "rate lock."
You can never be too sure about interest rates, and when you find a great rate on a mortgage, you'd like to know that it's not going to slip through your fingers in the time it takes for your loan to be processed. With a rate lock, the lender guarantees that the rate will hold steady for a certain amount of time while the T's are crossed and the I's are dotted.
A rate lock provides some interest rate security during the sometimes lengthy paperwork period until your loan is finalized.
To find the best mortgage rates, visit the rate tables at Bankrate.com.
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The conforming loan limit will stay at $417,000 for one-unit properties in most U.S. counties, the Federal Housing Finance Agency said Wednesday.
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