What if mortgage rates drop AFTER I have locked my rate?
Can I benefit from the lower rates, or am I stuck with the rate I locked ?
When you lock in your rate you are protected from movements in the market that may take place befoe your loan closes. In most cases once you lock in that protection you can not come back later and get a lower rate if the rates move lower instead of higher. In the same way, the lender cannot come back to you and say that the rates have increased and that your rate will also increase.
However, here at Network Funding we offer a Float Down program that allow you to lock in your interest rate at the current market rate and therefore protect yourself against future rate increases, while at the same time allowing you "Float Down" to a lower rate if the interest rates should move lower.
Talk about having your cake and eat it too. This "Float Down" program allows you to have the best of both worlds. If the rates should go up, you still have the low rate that you were able to lock in early in the loan process, AND if the rates go lower before your loan closes, you can get the lower rate too.
Give me a call today to discuss our Float Down program or any other home buying quesitons you may have. 866.435.6553