lock period

Definition

The guaranteed timeframe during which your mortgage interest rate won't change, typically 30-60 days. It's a race between closing and your lock expiring, with your financial future hanging in the balance.

Example Usage

Our lock period expires in two days and the seller just asked for a week extension—time to panic.

Origin

Mortgage industry practice standardized in the 1980s during high interest rate volatility

Fun Fact

You can pay extra to extend a lock period, proving that even your interest rate has an expiration date and everything costs more than expected.

Source: Mortgage rate and lending terminology

Related Terms

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down payment

The chunk of cash you fork over upfront when buying property, proving you have skin in the game beyond just promises and good intentions. It's the financial commitment that separates dreamers from homeowners.

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PITI

The four horsemen of monthly housing payments: Principal, Interest, Taxes, and Insurance. It's the total amount you'll shell out each month to keep a roof over your head and the bank off your back.

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phantom rent

The theoretical rental income from a vacant unit that's factored into pro forma projections but not actually being collected. It's the imaginary money that makes cap rates look better on paper than they are in reality.

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restrictions

The legal fine print that tells you what you can't do with your property, crushing dreams of backyard chicken coops and neon pink houses since time immemorial. These are the rules embedded in deeds, HOA bylaws, or zoning laws that limit how you can use or modify property. They're the reason you need to ask permission to build that treehouse in your own yard.

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mechanic's lien

A legal claim against a property by contractors or suppliers who weren't paid for work or materials. It's revenge served cold by your deadbeat seller's unpaid roofer.

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bpo

Broker Price Opinion—a real estate professional's estimate of a property's value, essentially an appraisal's less expensive, slightly less official cousin who still gets invited to family gatherings.

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