Helping Families Finance Dream Homes Since 2006

What is the difference between “locking” and “floating” interest rate?

  • Locking ensures that your loan pricing will be unaffected during the lock-in period by giving you a specified period of protection from financial market fluctuations in interest rates.
    Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked.
  • Floating – or not locking – means your rate will fluctuate with the up and down movements of 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.