What is a float-down option?
A float-down is a feature on a locked rate that lets you move to a lower rate one time if the market drops by a set amount before closing. It protects you against locking too early in a falling market.
It often costs a small fee or requires a minimum rate improvement to trigger. We'll explain the terms and help you decide whether the float-down is worth adding.
Lock with a safety valve
A float-down option lets you lock your rate but still capture a lower one if the market drops before closing. It combines the protection of a lock with some upside if rates fall.
It usually kicks in only when rates drop by a set amount and often costs a small fee.
Is it worth it
A float-down makes sense when you expect rates might fall but do not want to risk them rising while you wait. You get protection either way.
We will tell you if a float-down fits your situation and its cost. Apply now and we will lay out your lock options.
Verify the details for your own situation against these government and agency sources: Freddie Mac Primary Mortgage Market Survey and Federal Reserve H.15 selected rates.