When Smee applied for a loan,he was assured that his rate would not change if he closed within a specific time period.Smee had a(n)______ on the interest rate.

Question

Quizplus · Accepted Answer

The term used in this scenario is a "rate lock," which means that the lender guarantees a specific interest rate for a certain period. Therefore, the correct choice is C- lock. A is wrong because amortization is a repayment schedule for the loan. B is wrong because escrow is an account used by the lender to hold funds for property taxes and insurance. D and E are wrong because PMI and points are separate fees that may or may not be included in the loan.

When Smee Applied for a Loan,he Was Assured That His