Special offer

What Does Lock AND Float Mean?

By
Mortgage and Lending with Equity Resources NMLS 67179 Licensed in NC

Lock your rate Most buyers know that once they choose their lender and their mortgage program, they will be given the option of locking in that rate - or floating until they get so close to closing that they must determine which interest rate they are going to keep for the life of their mortgage (we must normally know the exact rate you choose 10 days prior to closing).

If you lock into an interest rate, with most institutions, and rates drop before you close - "oh well."  Conversly, if you meet with your lender on Monday morning, and rates are at 5% - then on Wednesday you decide you'd like that 5% rate and call the lender back... well, rates might be at 5%, or they might be at 5.5%!

We offer borrowers a unique option... if you lock into your rate with us today, and rates drop (up until 10 days prior to closing) we'll let you float down to a better rate!  There are a few strings attached, but not many, and we have saved our clients THOUSANDS of dollars because of a slight movement in interest rates.

If you are interested in getting the BEST mortgage interest rate in NC, call us!  With the First Time Homebuyer Tax Credit ending soon - we are seeing a TON of activity in the Triangle Housing Market!

Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Sounds like a wonderful opportunity for your clients!!  Is there a "float" fee for the option to move to a lower rate?  Just curious what the strings are. :)

Sep 02, 2009 01:56 AM
Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058

No - there's no cost... the rates must move 1/4 - I can't do it for an 1/8 of interest.  Thanks for asking!

Sep 02, 2009 02:20 AM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Eleanor,

Great to take some of the worry out of locking in a decent rate, when clients are afraid a decent-er rate will come along.

Sep 02, 2009 02:26 AM