What is the difference between locking and floating?
A lock gives you a specified period of time — usually 60 days — of protection from financial market fluctuations in interest rates by setting the range of pricing available to you. Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked for loans with your specific transaction characteristics and your credit profile. While locking does not guarantee that a specific rate will apply, it does ensure that your loan pricing will be unaffected during the lock-in period by changes in financial market conditions. For more information, please refer to the Loan Pricing Disclosure. If you choose to “float” or defer “locking,” your rate will fluctuate with the market and will be subject to both upward and downward movements in the market. The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower level of rates.
A lock gives you a specified period of time usually 15 to 45 days of protection from financial market fluctuations in interest rates by setting the range of pricing available to you. Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked for loans with your specific transaction characteristics and your credit profile. While locking does not guarantee that a specific rate will apply, it does ensure that your loan pricing will be unaffected during the lock-in period by changes in financial market conditions. If you choose to “float” or defer “locking,” your rate will fluctuate with the market and will be subject to both upward and downward movements in the market. The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower level of rates.
A lock gives you a specified period of time – usually 60 days – of protection from financial market fluctuations in interest rates by setting the range of pricing available to you. Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked for loans with your specific transaction characteristics and your credit profile. While locking does not guarantee that a specific rate will apply, it does ensure that your loan pricing will be unaffected during the lock-in period by changes in financial market conditions. If you choose to “float” or defer “locking,” your rate will fluctuate with the market and will be subject to both upward and downward movements in the market. The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower level of rates.
A lock gives you a specified period of time – usually 60 days – of protection from financial market fluctuations in interest rates by setting the range of pricing available to you. If you choose to ‘float’ or defer ‘locking,’ your rate will fluctuate with the market and will be subject to both upward and downward movements in the market. The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower level of rates.
If you choose to ‘lock-in’ on a particular rate, you will receive protection for a specified period of time from financial market fluctuations in interest rates. If you choose to ‘float’ your rate, it will fluctuate with the market and will be subject to both upward and downward movements in the market.
