What is a Rate Lock?

1
What is a Rate Lock?

• Nathan Carlisle

2
The What

• By definition, a rate lock is a guarantee from
  your lender, which promises a specific interest
  rate and price for a certain amount of time

3
The Advantage

• Rate locks help protect a borrower from the
  potential of a interest rate increase during the
  loan process

4
The Drawback

• Just as a rate lock can protect a borrower from
  increasing rates, it can also lock you into a
  higher rate if rates go down
• There is a cost to unlock a rate in order to
  relock a lower rate if rates drop. Many times
  the cost outweighs the benefit
• http//www.nathancarlisle.com/blog/5-active-adult-
  living-activities-in-dallas///www.nathancarlisle.
  com/blog/five-ways-travel-can-contribute-to-a-heal
  thy-retirement/sthash.6RIhIaEq.dpuf

5

• Thank you

For more information visit us online at
http//www.nathancarlisle.com/blog/what-is-a-rate-
lock/