Rate lock
A lender's promise to hold a specific interest rate and points for a set period while the loan closes. If the lock expires before closing, extending it can cost extra.
Also called: lock, locked rate, lock-in, float down
Related terms
The percentage a lender charges to borrow money, used to figure the interest part of each payment. It does not include fees, which is why the APR is often higher.
Upfront fees paid to the lender at closing to lower the interest rate. One point equals 1% of the loan amount. Paying points makes sense mainly if you keep the loan long enough to recover the cost.
The date set in the contract for the sale to close. It can move only if both sides sign an amendment.
A standard three-page form a lender must give within three business days of a loan application, showing the estimated rate, payment and closing costs. It makes offers from different lenders easy to compare.
The underwriter's sign-off that all loan conditions are met and the loan can fund. It typically comes a few days before closing and triggers the final Closing Disclosure.