rate lock

Definition

An agreement that freezes your mortgage interest rate for a specified period while you complete the purchase. It's financial stability in an unstable world, for 30-60 days at least.

Example Usage

We got our rate lock at 6.5% right before rates jumped to 7%—finally, good timing on something.

Origin

Mortgage industry practice developed during 1980s interest rate volatility

Fun Fact

Float-down options let you lock a rate but take a lower one if rates drop—for an extra fee, because nothing is ever truly free.

Source: Mortgage rate terminology

Related Terms

Beginner

coming soon

A property marketing status indicating a listing will be active shortly, used to generate buzz and pre-market the property before it officially hits the MLS. It's the real estate equivalent of a movie trailer, complete with the same level of hype.

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loan-to-value ratio

The percentage of a property's value that's borrowed, calculated by dividing loan amount by appraised value or purchase price. The number that determines whether lenders think you're responsible or reckless.

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Intermediate

off-market

Properties available for purchase that aren't publicly listed on the MLS or advertised to the general public. These are deals found through networking, direct marketing, or knowing someone who knows someone—real estate's version of insider trading, but legal.

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Advanced

non-conforming loan

Any mortgage that doesn't meet Fannie Mae or Freddie Mac guidelines, whether due to size, property type, or borrower qualifications. It's the misfit toy of lending, typically more expensive and harder to get.

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Beginner

mortgage

A special loan where you borrow hundreds of thousands of dollars to buy a house, pledging that very house as collateral in case you can't pay it back—what could go wrong? This secured loan lets you own property now while spending the next 15-30 years paying for it, with the bank holding seizure rights until you make that final payment. It's the American Dream™, assuming your dream includes amortization schedules and interest calculations.

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Beginner

Square Footage

The official measurement of how much space you're buying, generously calculated by including hallways, closets, and that weird alcove where the water heater lives. The number in the listing and the number you experience are two very different things.

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