Rate Lock

A rate lock or a lock-in is an agreement between a borrower and a lender to secure a specific interest rate for a set period during the mortgage application process. This usually ranges from 30 to 60 days. This protects the borrower from fluctuations in interest rates, ensuring the agreed-upon rate remains unchanged until closing, even if market rates rise. Rate locks provide borrowers with financial predictability, allowing for better budgeting. 

In loan management, tracking rate locks helps ensure that rate expirations are managed effectively, preventing unexpected changes in loan terms or costs.