The document says the float option means the above quoted rate is not guaranteed and may change at closing. This would lead me to believe that there may be a rate change, but one time…at closing. And thereafter, the rate will be fixed? Is this true?
I want a fixed rate. I don’t want to fall into the boat that the whole country has fallen into. If they checked this option for me beforehand, does that mean they will not consider a fixed mortgage, in which case, I will look to my second option, a smaller company.
What do you think about this?
Whew! OK. Thanks.
Asked by:Cesaria Barbarossa – 40K
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NOT at all.
It merely means you have NOT yet LOCKED in the fixed rate you will have, but are allowing it to float until whatever time you fix it.
TALK to your lender.
Generally you can lock it in whenever you want, but once locked, it is only good for a set amount of time, say 30 days.
No, it doesn’t mean you’re applying for an ARM. It means that your fixed rate is not yet “locked” and could change before you close on the house.