INTEREST RATE LOCK PROTECTS WHAT?

A interest rate lock gives one the impression of stability and no surprises. It gives one peace of mind. Right?

With fast changing interest rates, lenders sometime face the possibility of losing by the time the money is actually used and the earlier time that the loan rate is accepted. Sometimes it is the human error by an employee of the mortgage company that misquotes the fees for locking in rates and the lender then tries to adjust the loan service fees to improve their smaller profit or even reverse a loss.

For more informations see the Inman News story from July 11, 2004 that is on our LOCK PROTECTION? page.