A more thorough explanation:

Definition: A locked-in rate is an interest rate that is guaranteed to remain the same for a certain period of time, regardless of any changes in the market. This means that the borrower knows exactly how much they will be paying each month towards their loan or mortgage.

For example, if a borrower takes out a mortgage with a locked-in rate of 3.5%, they will continue to pay that same rate even if interest rates rise to 4% or higher. This can be beneficial for borrowers who want to budget their monthly expenses and avoid any surprises.

Another example of a locked-in rate is a fixed-rate credit card. The interest rate on the card is locked in at a certain percentage, usually higher than variable-rate cards, but the borrower knows exactly how much they will be paying in interest each month.

These examples illustrate how a locked-in rate can provide stability and predictability for borrowers, allowing them to plan their finances accordingly.