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Are LOs supposed to offer float down??

I'm just hearing about this and I would have really liked to get the lower rate but I'm locked in to a fixed. Can I float down anyway by quinn_farley827666 from Hockessin, Delaware. Feb 25th 2014 Reply


Brian Devlin (briandevlin)
#103 ranked lender in New Jersey - 12 contributions

Hello, Not all Lenders offer float down options. The ones that do offer it require that the rate drop by .25% or more in order to complete it. When did you lock the rate and how far along are you in the process?

Feb 25th 2014
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Very few lenders offer float down, as it is an expensive option for the lender. You can take your chances, and let the lock expire, and start over, or continue with the loan approval that you have.

Feb 25th 2014
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

Most lenders have a float down policy, but they are not all the same. I personally check my locks daily if I see the market favorable and see if they do qualify for a FD and if so I will initiate the process. But that's me I'm a little anal about giving the absolute lowest rate out there:)

Feb 26th 2014
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Edward Fallon (edfallon)
#91 ranked lender in Pennsylvania - 143 contributions

You can always approach your lender about floating down to a lower rate if rates have dipped significantly, and you are free to apply to another lender if you feel that is your only option. Every lender handles floatdowns differently. You should check with your lender to see if they can accommodate your request.

Feb 26th 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Not all lenders off this and those that do will usually have a slightly higher price to begin with. Some lenders say the will Float Down for free, but in reality, there's an added risk for the lender to allow this and that additional risk comes at a price.. they might not directly charge you extra, but if you compare the pricing on a float down loan vs. a non float down loan, you would most always get a better deal on the latter.. and also understand that the float down usually requires the rate to be at least .250 lower than the locked in rate.. very, very few times have I see a rate drop a full 1/4 point inside of 30 days.. I've see it go up that quick inside of 30 days, but not down.. For this reason, I give my clients the option to "Float down", but I always advise against it since the pricing is better without the float down feature.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Feb 26th 2014
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Yes. Good lenders do. Sure it's expensive but if small lender they can't afford. Only deal with lender not broker. Especially if you desire all features available Apply at www.firstfloridafin.com or call me 954 558 4430

Feb 26th 2014
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