Doug Haldeman: Do I Lock Or Float My Mortgage Rate?


When you submit a home loan application, you will be asked if you want to lock in your mortgage rate or float the rate.

If you choose to lock the rate, you are guaranteeing yourself a certain interest rate on your mortgage. So if the lender says you can lock in an interest rate of 5% on your mortgage today, and you’re happy with that, they can lock it in for you.

This ensures that your rate will not change, even if mortgage rates spike higher over the days and weeks after you lock.

At the same time, this means you won’t be able to take advantage of a lower mortgage rate, assuming they drop even lower as your loan closing date approaches.

However, if you choose to float your rate, you’re essentially telling the lender that you don’t like where rates are at, and want to wait for better.

Or it could just be that your loan approval is still a month away, and you don’t want to lock prematurely and have to pay to extend your lock if it takes longer than anticipated to close.

Either way, your mortgage rate is subject to change until it is locked, so you’re taking a risk, whether calculated or not.

Call Doug today to see where rates are and to understand what options you have regarding your mortgage.

Contact Information:

Doug Haldeman NMLS# 298419

Audio: Do I lock or float my mortgage rate?

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