Locking in your rate is a major step in the home-buying process, and might let you breathe a sigh of relief! Rate locks are great to protect yourself from rate increases while you move towards closing on your home, but what happens if rates decrease?
With Community First’s float-down mortgage, if rates go down after you’ve already been credit approved for your mortgage, you can still take advantage of dropping rates. Especially in an ever-changing rate environment, a float-down mortgage can give you the wiggle room to ensure you have the best rate available while still shielding you from rate increases.
Even a seemingly small rate change on your mortgage can have a big effect on your monthly payments. A rate decrease can lower your monthly payments and reduce the overall interest you’ll pay over the lifetime of your mortgage.
Plus, when you use a float-down mortgage from Community First, you can exercise a rate float-down at no fee, so you can be sure you’ll only be saving.
With a float-down mortgage, you can secure a rate early only without the worry that rates might improve later down the line. With a Community First float-down mortgage, you’ll also have up until 5 days before close to exercise a rate float-down, giving you a large window to take advantage of dropping rates.
Buying a home can be stress-inducing enough! A float-down mortgage takes out the guess work and anxiety of purchasing a home in a changing market. You’ll be able to feel secure in locking in your rate knowing that you can still take advantage of any savings from future rate drops.
We have a number of other home and other loans to help get your foot in the door!
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