Rate Lock and Prepay Options
Solutions for today’s market and tomorrow’s long-term goals
Fannie Mae Multifamily Rate Lock and prepayment solutions mean Borrowers gain flexibility, Lenders achieve efficiency, and Investors realize stability throughout the life of the Mortgage Loan. Built to perform across market cycles, these solutions offer protection, transparency, and execution consistency in today’s demanding environment.
With attractive Borrower and Investor-friendly structures and a commitment to reliable execution, Fannie Mae Multifamily aims to be your partner of choice for long-term success.
Flexible options address financing needs throughout the mortgage lifecycle
Borrowers can manage interest rate exposure during application and the completion of full underwriting with our Streamlined Treasury Lock. Designed for high-confidence, actionable deals, the Streamlined Treasury Lock provides earlier rate protection from index movement before final Rate Lock and while the Lender continues due diligence.
Ready to lock the all-in rate? Our Streamlined Rate Lock provides a fast, efficient path to rate certainty — you can lock in favorable terms with minimal complexity.
Plan with confidence and maintain execution certainty with our Declining Prepayment Premium structure. Borrowers get a predictable and transparent schedule that offers flexibility across fixed- and variable-rate Mortgage Loans.
For consistent cash flows and to preserve Investor returns, Yield Maintenance remains a trusted option. It ensures stability by aligning prepayment costs with market conditions, reinforcing the strength of Fannie Mae MBS.
Associated resources
Which rate lock fits your needs?
| Streamlined Treasury Lock | Streamlined Rate Lock (SRL) | Standard Rate Lock | |
|---|---|---|---|
| What it does | Lets the Borrower lock the Index before the Mortgage Loan is ready for a full Rate Lock. | Lets the Borrower Rate Lock the full interest rate before full underwriting is complete. | Lets the Borrower Rate Lock the full interest rate after full underwriting is complete. |
| Best for | Borrowers who want earlier Index protection from market movement while the deal continues through underwriting. | Borrowers who want full rate certainty once the Lender has completed enough preliminary underwriting. | Borrowers whose Mortgage Loan is fully underwritten and ready for final execution. |
| Eligibility | Available for eligible fixed-rate acquisition or refinance transactions. Intended for repeat sponsors that have transacted with Fannie Mae in the last 24 months. | Available for eligible fixed-rate Mortgage Loans. | Available for eligible Mortgage Loans that have completed full underwriting and satisfy applicable Guide, product, and approval requirements. |
| When it happens | After the Mortgage Loan is under application, sufficient preliminary underwriting and initial loan sizing is complete. | After all required preliminary underwriting is complete and internal loan committee approval is received. | After full underwriting is complete. |
| What is locked | The Index is locked. The quoted Investor Spread and Total Credit Fees which consist of Guarantee Fee and Servicing Fee are held at the time and subject to change if material deal facts change prior to full Rate Lock. | The full interest rate is locked. | The full interest rate is locked. |
| What should be ready | Initial sizing and preliminary underwriting, Borrower agreement/commitment, deposit, required known disclosures, and sufficient due diligence to support the Mortgage Loan amount. | Preliminary underwriting sufficient to support the Rate Lock amount, Borrower commitment, deposit, required known disclosures, and internal loan committee approvals. | Final underwriting package, final loan terms, and commitment ready information. |
| Deposit | Streamlined Treasury Lock Deposit is collected at execution. This deposit can be used in the conversion to SRL or standard Rate Lock. | Good Faith Deposit is collected per Guide Rate Lock requirements. | Good Faith Deposit is collected per Guide Rate Lock requirements. |
| Timing window | The Index is locked through the stated Quote Expiration Date per the Fannie Mae Quote Letter to the Lender. | Rate Lock period must be 180 days or less | Rate Lock period must be 180 days or less |
| Loan amount flexibility | Final Rate Lock amount must be within 90% to 110% of the Streamlined Treasury Lock amount. | Standard delivery tolerance applies. | Standard delivery tolerance applies. |
| What happens next | The Lender continues underwriting, then the transaction must convert to either SRL or Standard Rate Lock. | The Lender completes full underwriting after Rate Lock and Commitment and proceeds to Delivery. | The transaction proceeds through Commitment and Delivery. |
| Main benefit | Provides earlier protection from Index movement while preserving flexibility on the final Rate Lock path. | Provides earlier full-rate certainty before final underwriting is complete. | Provides final rate certainty once the transaction is fully underwritten. |