The age-old question of “Lock or Float?” is typical in the mortgage industry. Mortgage brokers get asked this question frequently by first-time home buyers. The answer to this question will determine the mortgage rate borrowers ultimately receive.

Interest rates dictate monthly payments for up to 30 years (without refinancing), so this option should not be taken lightly. When you apply for a mortgage, you will be given the option to either lock or float your interest rate. Read on to discover some differences between the two.


  • Interest rate won’t change as long as you fund your loan prior to the expiration
  • Guaranteeing yourself a specific interest rate that will remain
  • Doesn’t obligate you to go through with the loan but promises a specific rate
  • Refinancing is best because the schedule for closing the loan depends on the lender
  • Doesn’t work as well for borrowers who are buying a home


  • Rates might rise and fall until you finally lock in your interest
  • Ability to take advantage of a lower rate if it comes up, but you must be vigilant
  • Better choice for home buyers
  • Ensure you know exactly what the float rate will be based on

The mortgage experts at EB Mortgage can advise you on which move to make. Contact us to learn more.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail today.

Written by the digital marketing staff at Creative Programs & Systems:

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