General Mortgage KnowledgeQuestion 148 of 400
A rate lock primarily protects the borrower against what?
a.Property damage
b.Default
c.Appraisal shortfalls
d.Interest rate increases before closing
Explanation
A rate lock guarantees a specific interest rate for a set period, protecting the borrower if market rates rise before closing. It does not cover property damage, default, or appraisal value.
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