Rate Lock
Lending & MortgagesA lender's guarantee to hold a specific interest rate for a set period while your mortgage application is processed.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding rate lock helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how rate lock impacts your specific situation.