Smart strategy saves thousands mortgage rate lock vs float

When you're navigating the complex world of mortgages, understanding whether to lock in your rate or let it float can save you thousands, and by taking the time to browse options and visit websites, you can make the most informed decision.

Understanding Mortgage Rate Lock vs. Float

Securing a mortgage is one of the most significant financial commitments you'll make, and the decision to lock or float your interest rate can dramatically impact your financial future. A mortgage rate lock is an agreement between you and your lender to secure a specific interest rate for a set period, typically ranging from 30 to 60 days. This can protect you from potential rate increases while your loan is processed. Conversely, choosing to float your rate means you’re opting to let the interest rate fluctuate until the loan is finalized, which could potentially result in a lower rate if market conditions improve.