Float-Down

Float-Down

A rate lock, plus an option to reduce the rate if market interest rates decline during the lock period.

See Locking the Loan/Lock Versus Float-Down.

References in periodicals archive ?
If rates decrease, LockBreaker provides the borrower with a one-time float-down feature.
The Homeownership Opportunities Initiative also offers borrowers who are building a new union-built home, a forward rate lock on their mortgage for a period of up to nine months with a one time partial float-down option which protects the borrower from rising interest rates during the construction period.