Can I get a lower rate if rates drop?
Rate locks and float-down promises for mortgage shopping. Know what to expect when shopping for the best rate.
What You'll Learn in This Chapter
- Why lenders promise float-down options and how the terms are often vague or restrictive
- The difference between standard rate locks and true float-down agreements
- Scripts to demand written rate lock terms before committing to a lender
You ask a lender about locking your rate, and the lender responds: "If rates drop significantly before closing, we can often adjust your rate downward. But if rates go up, you're protected. It's really the best of both worlds."
But, here's what's really happening...
"We Can Adjust Your Rate If Rates Drop" is a verbal reassurance tactic that creates the impression of downside protection without committing to specific terms. The loan officer's process is to promise flexibility during the sales phase, knowing that vague language like "often," "work with you," or "if rates drop significantly" allows them to avoid rate adjustments later based on fine-print conditions.
As a shopper, your counter-process is to demand written float-down terms that specify the exact conditions: How much must rates drop? What fees apply? What documentation proves the rate drop? When can you request the adjustment? Most lenders who promise flexibility verbally will not put enforceable terms in writing—which reveals the promise was never real.
Now that you understand the tactic, let's look at how most people fall into the trap.
➡ How People Get Trapped
Most people respond with:
That sounds great. I feel better about locking in now.
Don't do that.
When you accept verbal reassurances about rate adjustments without written terms, you've locked in at a rate that may become uncompetitive if the market moves down. When you later ask for the promised adjustment, the lender will cite conditions you never knew existed: "Rates need to drop by 0.5%, not 0.25%," or "Float-down is only available in the first 30 days," or "There's a $500 fee for rate adjustments."
Verbal promises disappear at closing.
➡ What You Should Say Instead
I appreciate you explaining the rate lock policy. Can you provide me with a written rate lock agreement that clearly states the terms, including any float-down options and the conditions under which rates can be adjusted?
Here's why this is the right approach:
- Demands written documentation instead of verbal reassurances
- Forces the lender to specify exact float-down conditions (rate drop threshold, fees, timing)
- Allows comparison of rate lock policies across lenders based on written terms
- Exposes empty promises when lenders refuse to put terms in writing
The script acknowledges interest in rate protection while insisting on enforceable written terms before locking.
➡ See The Mortgage Script in Action
➡ Key Takeaway
Verbal promises about adjusting rates if they drop are meaningless. Demand written float-down terms that specify conditions, fees, and timing—or assume the rate lock is one-way protection only.
Related Mortgage Resources
Mortgage Calculator
Calculate how different rate scenarios affect your monthly payment and total cost.
Add An Extra Lender
Get Loan Estimates showing float-down options from multiple lenders.
Home Affordability Calculator
See how rate changes affect how much house you can afford.
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