Lock-In Agreement

Lock-In Agreement is an agreement between the borrower and mortgage lender. It specifies the terms and conditions, including the interest rate and loan program, for a specific period.

Guaranteed Interest Rate and Program

In a lock-in agreement, the lender guarantees a particular interest rate and loan program for the borrower during the lock-in period. This means that the borrower is protected from potential interest rate increases during that period, even if market rates rise.

Duration of Lock-In Period

The lock-in period is usually a fixed duration, such as 30 days or 60 days.

Terms and Conditions of Lock-In Agreement

The terms and conditions outlined in a lock-in agreement may include the interest rate, loan type (such as a fixed-rate or adjustable-rate mortgage), loan duration, points, and any other relevant fees or costs associated with the loan. The agreement helps both the borrower and the lender by providing certainty and protection against market fluctuations during the lock-in period.

Understanding Your Lock-In Agreement

It’s important to note that the specifics of lock-in agreements can vary depending on the lender and the loan program. Borrowers should carefully review and understand the terms and conditions of such agreements before signing them, as it can have implications for their mortgage loan and financial situation.

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As a mortgage broker, your clients rely on your expertise to find them the best deals. Our Quick Pricer tool can be an invaluable asset in your quest to secure the most advantageous mortgage rates. Be sure to explore our Programs section for additional resources tailored to your needs. If you have specific scenarios in mind, don’t hesitate to request them; we’re here to assist you. And if you’re interested in joining forces to provide even more value to your clients, consider becoming a partner with us. Together, we can empower individuals and families to achieve their dreams of homeownership.