Season 1 curriculum
Free roomThe Glossary - Learn the Language7 min · Jim

Lesson 9 · Glossary lesson

Rate Lock Mechanics

Make rate locks understandable without turning the lesson into a quote or pricing promise.

Scenario

A borrower asks whether they should lock, float, extend, or expect a float-down.

Learner Outcome

The member can explain lock period, expiration, extension cost, float-down myths, and changed-circumstance caution at a high level.

Skool summary

Rate lock basics: period, expiration, extension, float-down myths, and why pricing language needs care.

1

Plain-English definition

A rate lock generally holds specific pricing terms for a specific borrower, property, product, and period, subject to lender rules and no material changes. If the loan is not ready before expiration, extension rules may apply.

2

What changes it

Loan amount, credit, product, property type, occupancy, lock period, points/credits, market movement, changed facts, and timing can all matter. Never explain a lock as if it is detached from the file.

3

Borrower-safe language

Say: 'The lock protects this pricing for this file and this window. If facts or timing change, we need to review how the lender handles it.'

Homework

  • Rewrite a lock explanation with no rate quote and no float-down promise.