(1) The borrower decides to delay locking their interest rate on their loan. They can float their rate in expectation of the rate moving down. At the end of the float period they must lock a rate.
(2) The interest rate is the amount charged by a lender in exchange for loaning money to a buyer. It is expressed as a yearly percentage of the total loan amount and is paid on a monthly basis as part of the mortgage loan payments. Interest rates change daily, but once a borrower locks a rate for a fixed-rate mortgage, the borrower will make payments according to this rate for the entire life of the loan. Learn what it takes to get pre-approved for a mortgage.