Home Buying Process
Float Down Mortgage Rate Strategy
Your Roadmap to a Confident Home Purchase
Whether you’re buying for the first time or the fifth, having a clear understanding of the home buying process makes all the difference.
My comprehensive Home Buyer Overview walks you through every stage—from financing and offer strategy to inspections, closing, and beyond—so you can navigate your purchase with clarity, confidence, and fewer surprises.
If interest rates are trending downward, you may be wondering whether to wait—or how to take advantage of the drop without missing your window to buy. In this video, Adam explains the “float down” strategy, which allows eligible buyers to secure a lower interest rate after locking in. This is an ideal approach for buyers using conventional loans who want to balance certainty with flexibility in a falling-rate market.
What You’ll Learn in This Video:
What a “float down” is and how it differs from traditional rate locks
When and how you can use a float down to lower your interest rate
The types of loans that allow float downs (and those that don’t)
Why timing is key—since most float downs can only be used once
Whether a float down is a smart move in your situation
What’s on the market now? Customize your home search.
Ready to start the process? Schedule a brief conversation.
Adam Tabaka (00:00):
Alright, last time we talked about what if you’re in an environment where interest rates are on the rise or expected to rise. Now, what if we’re in an environment where interest rates are falling or expected to fall in the coming weeks and months?
(00:14):
Well, in those situations, what you might want to consider is called a float down. With a float down, you’ll lock in your interest rate at the time of your mortgage application, and if rates fall within the next 30 to 60 days, you’ll be able to lock in an even lower rate. Now with a float down, typically you’re only going to be able to float down to a lower interest rate one time, so you’ll have to choose carefully when you lock in that lower rate.
(00:40):
Like with a lock and shop, float downs are typically going to be restricted to conventional conforming loans and will generally not be available for FHA financing, VA financing, non-QM loans and jumbo loans. But if you’re in the conventional conforming space and you anticipate that rates may fall within the next 30 to 60 days, a float down might be an option worth considering.
(01:04):
Want to learn more? Check out my Home Buyer Overview. Ready to get the process started? Give me a call or schedule time with me down below. Until next time, take it easy.
Your Roadmap to a Confident Home Purchase
Whether you’re buying for the first time or the fifth, having a clear understanding of the home buying process makes all the difference.
My comprehensive Home Buyer Overview walks you through every stage—from financing and offer strategy to inspections, closing, and beyond—so you can navigate your purchase with clarity, confidence, and fewer surprises.