How does a borrower benefit from locking in an interest rate?

Locking in an interest rate provides the borrower with a safeguard against potential increases in interest rates that might occur during the loan approval process. When rates are locked in, the borrower ensures that they will receive that specific rate, regardless of market fluctuations that could lead to higher rates before the loan is finalized. This is particularly beneficial in times of rising rates, as it can lead to significant savings over the life of the loan.

Floating with the market, simplifying the loan approval process, or guaranteeing lower monthly payments do not necessarily reflect the primary benefit of a rate lock. Floating may expose a borrower to risks if rates increase, while the other factors are not directly tied to the security provided by a locked rate. Thus, locking in an interest rate chiefly protects the borrower from the uncertainty of rising rates.