Terms

What are "terms?" Terms are the various clauses that make up a contract. Most of the time however, the word "terms" is used to describe the financial portions of a contract or mortgage. On your mortgage application, you will be given the opportunity to either "Lock-In" or have a "Prevailing" interest rate.

Prevailing/Floating Rate: The interest rate and/or charges are not protected against market conditions. The final interest rate and/or charges will be established and set prior to the actual settlement date. It will be based on market conditions which are prevailing at the time for loans of this type and amount. The rate and/or charges which are set will be done solely at the discretion of the lender.

Locked-in Rate: Your interest rate and/or charges are protected against market conditions. In the event market conditions cause mortgage interest rates and/or charges to increase/decrease, the interest and/or charges will be the same as the interest rate and/or charges locked-in. Talk more to your Loan Officer about how to "lock-in" your rate—even before you find your home!