What is a lender's guarantee that the interest rate quotes are valid for a specific number of days called?

A lender's guarantee that the interest rate quotes are valid for a specific number of days is called a "Rate Lock." This process protects borrowers from interest rate fluctuations during the time it takes to finalize the loan process. When a rate lock is in place, the lender agrees to hold the interest rate at a specified level for an agreed-upon period, which can range from a few days to several months, depending on the lender's policies. This provides certainty for borrowers, allowing them to plan their finances without the risk of rising rates affecting their loan affordability.

Having a rate lock in place can also enhance a borrower's confidence, as it shields them from potential market changes. The specified time frame ensures that both the borrower and lender have a mutual understanding of the terms during the loan processing phase, making it a critical aspect of mortgage financing.