What does it mean to lock or float an interest rate during the application process?
A. Mortgage loan interest rates can change on a daily basis. Some members prefer to avoid this uncertainty by locking in the rate quoted at the time of loan application. Others prefer to float their rate, or take a risk on the market, which determines interest rates. A lock agreement must be executed by all parties at the time of loan application in order for the lock to be valid. Changing from a Float to a Lock decision can be done over the phone only if you have previously decided to Float during the initial application process.
