What happens if rates drop after I lock?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Normally your locked rate stays put even if the market falls, but many lenders offer a one-time float-down option that lets you capture a lower rate if it drops significantly before closing.
A float-down may carry a fee or minimum-drop threshold. We'll tell you whether your lock includes one and whether using it makes sense if rates slide.
You keep your locked rate
Normally, once you lock, you keep that rate even if the market drops. The lock protects you from increases, but it also holds you to the rate you chose.
That is the trade-off of locking: certainty in exchange for giving up a possible drop.
The float-down option
Some lenders offer a float-down that lets you take a lower rate if the market falls significantly after you lock, usually for a fee and within limits.
If rates fall a lot, refinancing later is another path. Reach out and we will explain your float-down and refinance options.