interest rate lock
[/ˈɪntrəst reɪt lɑːk/]
nounpl: interest rate locks
travamento da taxa de juros
1. A financial agreement that guarantees a borrower a specific interest rate for a mortgage or loan for a set period of time, protecting them from rate increases
The bank offered an interest rate lock of 3.5% for 60 days to secure the mortgage terms.
O banco ofereceu um travamento da taxa de juros de 3,5% por 60 dias para garantir os termos da hipoteca.
2. A commitment by a lender to maintain a quoted interest rate during the loan application and underwriting process
She obtained an interest rate lock before market rates increased significantly.
Ela obteve um travamento da taxa de juros antes das taxas de mercado aumentarem significativamente.
In the United States, interest rate locks are a crucial protection mechanism in the mortgage industry and are heavily utilized by homebuyers concerned about rate fluctuations. In Brazil, while the concept exists in commercial banking, variable rates and indexed rates are more common in consumer lending. The practice reflects different approaches to financial risk management between the two markets.
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