How does a fixed-rate 'lock' period differ from simply having a fixed-rate loan?

• A. A rate lock requires paying additional points to secure the rate for the life of the loan.
• B. A rate lock guarantees a quoted fixed rate for a set period during settlement; after lock, the rate may revert to market.
• C. A fixed-rate loan guarantees the rate for the entire term without variation.
• D. Rate lock guarantees the rate even after settlement.

Answer: (B)