Why Would You Want to Use a Float Down Rate?
At most mortgage companies once your rate is locked, their interest rate is set at the original locked in rate. What happens if mortgage rates drop after a client locks in? Typically, with most other mortgage companies, a client would be stuck with the higher rate. The Float Down Rate can help you get a lower rate if things change.
How PrimeLending’s Float Down Rate Lock Works
1. Lower Rate by .375%: A float down allows you to lower your rate up to .375%
2. Closing in 20 days: Once you execute a float down your loan must close within 20 days
3. Float down once: A client may float down one time during the loan process
It is one of many tools I offer to help make your mortgage experience one you will enjoy and benefit from. There are no “catches” related to the program however we do require a level of commitment from each client using the Float Down Mortgage Rate Lock program.
The only time a client is charged is if THEY choose to cancel. If their home does not appraise, they are not qualified or if the seller does something to cause the transaction to cancel our client is NOT charged. Bottom line, if you are planning on switching mortgage lenders DO NOT utilize the Float Down. In every other case the Float Down is the best way to protect yourself by allowing me to leverage a drop in mortgage rates during your home loan process.