Savvy Homebuyers Master Mortgage Rate Lock vs Float

Understanding whether to lock in a mortgage rate or let it float could save you thousands, so it's crucial to browse options and make informed decisions that maximize your financial advantage.

Understanding Mortgage Rate Lock vs. Float

When you're in the market for a new home, one of the pivotal decisions you'll face is whether to lock in your mortgage rate or allow it to float. A mortgage rate lock guarantees your interest rate for a specified period, which can be beneficial in a rising rate environment. Conversely, a floating rate can be advantageous if you anticipate rates dropping before you close on your home. The choice between locking and floating is not merely about predicting rate movements but involves a strategic assessment of your financial situation and market conditions.