When a customer applies for a loan with us and we quote an interest rate, we’ll ask the customer if they want to lock it in or float the rate. To lock in the rate means that will be the rate for their loan. To float means the quoted rate could change, it could go up or go down, depending on market conditions. It will have to be locked before closing, so they can float it up until then.

The question becomes whether to lock in or float the rate. If it is an increasing rate environment, then you may want to lock in the rate when it is offered, so you are assured of getting the rate before it goes up. If it is a decreasing rate environment, you may want to float the rate hoping it will go down and you can lock it in at a lower rate and payment.

Many times, customers become focused on the rate without thinking of how it affects the payment.

For example, on a $300,000 loan, a difference of ⅛% in rate results in only a $22.52 difference in monthly payment on a 30-year fixed mortgage. You may find this information
helpful in determining whether to lock the rate.

Should you lock the rate or float?

Contact us and we can help you make this decision.

We offer a variety of products and services, ask us how we can assist you today:
Counsel Mortgage Group®, LLC
NMLS #178927
AZ MB #0909580
CA DBO #60DBO43873

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