Once your mortgage application is in, you face a decision that can quietly cost or save you thousands of dollars: lock your rate now, or let it float in hopes of a better one.
A float-down option, for a fee, allows one reset if rates drop before closing.
A rate lock guarantees your quoted rate for a set period, typically 30, 45 or 60 days, regardless of what happens in the market. If rates rise during that window, you're protected. If rates fall, you're held to your locked rate unless your lender offers a float-down option.
Floating means you don't lock, and your final rate is set closer to closing. If rates drop, you benefit. If they rise, your payment rises with them.
Locking tends to make sense when:
Floating tends to make sense when:
With a float-down option, your lender allows one rate reset, for a fee, if rates drop before closing. It costs more upfront but gives you the security of a lock with some of the upside of a float.
Most borrowers benefit more from locking early than from trying to time the market.
Predictability has real value when you're making one of the largest financial decisions of your life.
Self-employed borrowers face a different mortgage path. Learn what lenders look for, what documents you need, and how to strengthen your application.
The same borrower can get very different mortgage quotes. Learn why rates vary between lenders, and how to shop smart for a better deal.
Inflation is one of the biggest drivers of mortgage rates. Learn how the connection works, and what it means for buyers and homeowners today.
A loan officer can walk you through lock periods and float-down terms against your closing date before anything is offered. Pre-qualifying will not affect your credit score.
Pre-qualify