"Float"

Allowing the rate and points to vary with changes in market conditions. The borrower may elect to lock the rate and points at any time but must do so a few days before the closing. Allowing the rate to float exposes the borrower to market risk, and also to the risk of being taken advantage of by the loan provider. See Is it Wise to Float?

Mortgage glossary and terms by letter

A B C D E F G H I J K L M N O P Q R S T U V W Y Z 0

Was this page helpful? Yes: 0 No: 0 6