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.
See this week's average rates for the 30-year fixed-rate mortgage, 15-year fixed-rate mortgage, 5/1 ARM and 30-year jumbo mortgage in Los Angeles.
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