Float-Down
A float-down is an option that lets a borrower capture a lower rate if market rates fall during an existing rate lock.
What Float-Down means
It provides downside protection on top of the lock, usually for a fee. If rates drop meaningfully before closing, the borrower can reset to the lower rate once.
Florida example
A Florida borrower locks at 6.875% with a float-down option. When rates dip to 6.5% before closing, they exercise the float-down and close at the lower rate instead of the locked one.
What it is
A float-down lets you lower your locked rate if market rates drop before you close. It gives you a one-time chance to improve your rate.
There may be a fee or set rules to use it.
Why it matters
A float-down protects you if rates fall after you lock. You get the safety of a lock with some upside.
We explain float-down options up front. Reach out and we will help you lock with confidence.
Related program: Learn more →
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.