Rate Lock Explainer for Clients

Most clients do not understand what a rate lock is, when to do it, or what happens if they miss the window. This prompt generates a clear, client-friendly explanation you can send when the rate lock conversation comes up - which is often right after pre-approval or right after an accepted offer.

The Prompt

Write a rate lock explanation for a mortgage client.

Client Name: [CLIENT NAME]
Current Rate Offered: [RATE - e.g., 4.89% on a 5-year fixed]
Lock Period Options: [e.g., 30 days, 60 days, 90 days, 120 days]
Expected Closing Date: [DATE or "TBD - still shopping"]
Market Direction: [RATES TRENDING UP / DOWN / STABLE]
Float-Down Option Available: [YES / NO]
Broker Name: [YOUR NAME]

Write a clear explanation that covers:

1. WHAT A RATE LOCK IS: Plain-English definition. What it guarantees and for how long.
2. WHY IT MATTERS: Show the dollar impact - if rates move [0.25%] between now and closing on a [MORTGAGE AMOUNT] mortgage, their monthly payment changes by approximately [$X].
3. WHEN TO LOCK: General guidance based on their situation. If they're still shopping for a home, discuss the timing trade-off. If they have an accepted offer, explain the standard timeline.
4. LOCK PERIOD OPTIONS: Explain each available option, the cost difference (if any), and which one fits their timeline.
5. WHAT HAPPENS IF THE LOCK EXPIRES: What are the consequences and options.
6. FLOAT-DOWN OPTION: If available, explain what it is and whether it makes sense for them.
7. MY RECOMMENDATION: Based on current market direction, give a clear recommendation (lock now vs. float) with brief reasoning.

Write 250-350 words. Use short paragraphs and bullet points. Avoid mortgage jargon - if you use a term, define it. End with an invitation to discuss by phone if they have questions.

How to Use It

• Send this proactively rather than waiting for the client to ask. It positions you as thorough and transparent.
• Update the dollar-impact example with their actual mortgage amount for maximum relevance.
• If rates are volatile, send this earlier in the process. If rates are stable, it can wait until closer to an offer.
• Follow up with a phone call after sending - rate locks are high-stakes and most clients want to talk it through verbally.

Example Output

The AI will produce a structured, jargon-free explanation of rate locks with a specific dollar-impact example, clear descriptions of each lock period option, and a direct recommendation. The client finishes reading with a clear understanding of their choices and confidence in their broker’s guidance.