In the ever-changing landscape of mortgage rates, the importance of securing the best deal paramount. For the first time in what seems like forever, we have re-entered a rate declining market. While this is exciting news, it can come with its own set of concerns, like, “How will I know when it’s the right time? Is this really the lowest rate?”. Both are valid.
I want to share one of the most powerful tools we as brokers, have in our arsenal – and that is what is known as, the Rate Float Down.
What are Rate Float Downs?
Rate Float Downs are a unique feature that allow us to take advantage of potential interest rate drops even after you’ve locked in your mortgage rate. Think of it as Rate Insurance. If rates were to flip and go back up, your rate would remain locked in. If rates continue to fall, the Rate Float Down makes sure that you can capitalize on the lower rate.
How Do They Work?
When you lock in your interest rate, you’re essentially securing a specific rate for a set period. However, if market rates decrease before your loan closes, as brokers, we can request a Rate Float Down through our partnering lenders and banks, which adjusts your rate to the lower prevailing market rate, making sure that you are always getting the best rate available, saving you money over the life of your loan.
How Can You Benefit?
- Financial Savings: By monitoring market trends and employing Rate Float Downs strategically, we aim to maximize your savings on interest payments.
- Peace of Mind: Market conditions can be unpredictable, but Rate Float Downs offer a layer of protection. You can rest easy knowing that if rates drop, you won’t miss out on potential savings.
- Customized Solutions: A commitment to providing tailored solutions means I am always exploring innovative ways to optimize your mortgage terms. Rate Float Downs allow us to adapt to changing market dynamics with your best interests in mind.
If you’re in the process of securing a mortgage, or know someone who is, now is the perfect time to consider taking advantage of a falling rate environment. I am here to guide you through the process, ensuring you make informed decisions that align with your financial goals.
Feel free to reach out to further discuss how Rate Float Downs can work for you or to explore other ways to enhance your mortgage experience.