Mortgage Rate Floating Down Explanation

A lot of lenders now offer the option to allow floating down the mortgage rate once before you signoff the loan docs.

Here are some of the basics about the floating down:
1)The lenders usually allows floating down after the loan approved.

2)Some lenders will request the loan to be closed within the 15 days after the rate floating down(or renegotiation).

3)The rate floating down is not 1-1 floating down. If you locked the rate at 5.25%, the market rate lowed to 5% in two weeks. Can we get 5%?No. The lender will charge the broker\'s cost to float down. Some lenders charge 0.375% points, some 0.625 points, etc. So only when the rate drops a lot(like 0.375% or more), you can benefits from the floating.

Usually, please don\'t expect too much from the floating down policy. It was designed to benefit the borrowers when the rate has a big drop(not 0.125% or 0.25%).