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What is rate protection and how does it work?

Some lenders offer interest rate protection plans. When you select a rate protection program, the lender sets an interest rate and guarantee this rate will not rise above that capped rate. If the rates go down, your interest rate "floats down" with them. If rates increase, you will close at the capped rate therefore you are protected from the increase. The length of protection offered varies from program to program.

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