Mortgage Rate Lock

See: Mortgage.

We’re finally ready to take our adulting to the next level and buy ourselves a house. It’s an exciting time, especially since interest rates are hovering right around 3.1%, which is much lower than they were several months ago. We’d love to secure a mortgage with that nice low interest rate, so we work with our lender to establish a “mortgage rate lock.”

Basically, we’re locked in at a 3.1% interest rate for a specified period of time. Sometimes, the rate lock only applies to the length of time it takes for our loan application to be processed, but sometimes it can extend longer. In some instances, we can even lock in that rate for the entire duration of our mortgage, which is usually 30 years.