Definition of "Lock-in-clause"

James  Mazza
James Mazza PalmerHouse Properties

A clause inserted in a loan agreement by a lender guarantee a quoted interest rate on a loan for a specified period of time. The lock-in-clause is an incentive for the borrower to close the loan before the expiration date. In relatively stable economic periods characterized by a low rate of inflation, lock-in-clause can be made for longer periods of time than during inflationary periods where there can be rapid changes in interest rates.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ