Float
Definition
To float a mortgage rate is to leave the interest rate unlocked so it can still move before closing. It is the opposite of a rate lock, not a separate loan product.
In plain English
After a loan is in process, the borrower and lender may lock the rate or leave it open. Leaving it open is floating the rate. A rate lock holds a quoted rate for a stated lock period. Float is the choice not to lock yet. Lender-specific float-down options are not this page.
Technical definition
CFPB’s official rate-lock page explains a lock-in or rate lock and is PRIMARY for the official contrast that makes floating meaningful.
Why it matters
Shoppers hear lock and float used as if they were products. They are choices about the same interest rate.
Related terms
Commonly confused with
Sources reviewed
What's a lock-in or a rate lock on a mortgage?
ObservedSeptember 6, 2026
Important note
Do not describe lender-specific float-down products.