A written rate lock agreement is a document that outlines the terms and conditions of a mortgage rate lock between a lender and a borrower. This agreement is a legally binding contract that ensures that the borrower`s interest rate remains fixed for a specified period, usually 30 to 60 days.

When obtaining a mortgage, borrowers may want to lock in their interest rate to prevent any fluctuations in the market. This can be especially important if interest rates are expected to rise. A rate lock agreement ensures that the borrower`s rate remains the same, even if rates increase.

A written rate lock agreement should include the following information:

1. Start and end dates of the rate lock period.

2. The interest rate being locked in.

3. Any costs associated with the lock, such as a rate lock fee.

4. The terms and conditions of the lock, including any contingencies.

It`s important to review the terms of the agreement carefully before signing. Some rate lock agreements may include penalties if the borrower decides not to proceed with the loan or if the loan does not close within the agreed-upon period.

A written rate lock agreement can provide peace of mind for borrowers by ensuring that their interest rate remains fixed, regardless of market fluctuations. It`s important to work with a reputable lender who will provide transparent information about the rate lock process and associated fees. By doing so, borrowers can make a well-informed decision about their mortgage and have confidence in their financial future.