Definition of "Float"
Allowing the interest rate and points to vary with changes in market conditions, as opposed to 'locking' them. Floating may be mandatory until the lender's lock requirements have been met. After that, the borrower may elect to lock the rate and points at any time but must do so a few days before the closing. Allowing the rate to float exposes the borrower to market risk and also to the risk of being taken advantage of by the loan provider.
Popular Mortgage Terms
A request for a loan that includes the information about the potential borrower, the property and the requested loan that the solicited lender needs to make a decision. In a narrower sense, ...
Same as term Points: An upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., '3 points' means a charge equal to ...
A rate lock, plus an option to reduce the rate if market interest rates decline during the lock period. ...
A lender that sells the loans it originates, as opposed to a portfolio lender that holds them. ...
If you’re a student in medical school, a resident or a medically qualified doctor, you must know the definition of Physicians Mortgage Loan, also known as Doctor Loans. Why? Because, ...
The maximum allowable increase in the interest rate on an ARM each time the rate is adjusted. It is usually one or two percentage points. ...
The interest rate that is fixed for some specified number of months or years at the beginning of the life of an ARM. ...
On an ARM, the assumption that the interest rate rises to the maximum extent permitted by the loan contract. ...
The most recently published value of the index used to adjust the interest rate on an indexed ARM. ...
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