Rate Locks & Float-Downs: What You Need to Know
If you’ve been following the headlines, you know rates have been bouncing like a rollercoaster. What most people don’t realize is that rates can change multiple times in a single day.
That’s where a rate lock comes in—it’s like putting on your seatbelt before hitting a bumpy road.
Why Lock?
- Protects you from market spikes while you’re under contract
- Gives you peace of mind about your monthly payment as you budget for closing
- Removes the guesswork so you can focus on everything else (like packing!)
What’s a Float-Down?
At BankSouth, we add an extra layer of protection:
- If rates improve meaningfully while you’re locked, you may qualify for a one-time float-down* to the lower rate.
- It’s not automatic—eligibility depends on loan type and timing.
- Think of it as: lock your seatbelt now, but still get to enjoy the smoother ride if the market moves your way.
BankSouth’s Float-Down Highlights (Extended Locks)
- Rates must improve by at least 0.125%
- Credit score/history must remain steady
- Original lender credit can’t increase
- Available within 60 days of closing, but no closer than 10 days
Choosing a Lock Period
- Match it with your closing date (and allow room for appraisal/title work)
- Longer locks = more protection, but may cost more/rate maybe slightly higher
- Need more time? Extensions are usually available (fees may apply)
Lock Now or Wait?
- If today’s rate works for your budget → lock it and reduce risk
- If you’re rate-sensitive and have time → ask about float-down eligibility
The truth is, no one can time the market perfectly. But with a solid lock strategy (and float-down in your back pocket), you can win both ways.
Bottom Line
Rate locks = protection. Float-downs = flexibility. Together, they make sure you’re not at the mercy of market whiplash while moving toward closing.
Want help choosing the right lock strategy? Let’s talk through your numbers, timeline, and goals so you can move forward with confidence.
The BankSouth Mortgage Advantage
Experience the speed of ReadyApprove from BankSouth Mortgage, where you can secure conditional approval for conforming loan limits within hours.
With ReadyLoan®, you can make this process even easier. Our digital platform lets you apply, track your loan progress, and submit documents securely—all from your computer or mobile device. You’ll be armed with the confidence to quickly submit an offer, and the seller will see you as a serious, prepared buyer.
Have peace of mind with our FREE one-time rate float-down* and no lender fee refinance options!
When you purchase your home with me at BankSouth Mortgage, you may be able to refinance later with no lender fees.** This program offers flexibility as life changes, with the potential for savings when it matters most.
*One-time float down available on 45-120 day rate locks. Float down must be executed at least 15 days prior to closing and must be at least .125 improvement. ** This offer may change or end at any time without notice. “No Lender Fees” refers to waived origination charges. Eligibility conditions apply. Subject to credit and property approval.
Blog post date: Thursday, September 11, 2025
