Author: Michael BernsteinPublished:
Buying a home in Austin is exciting, but locking in your mortgage rate can feel stressful—especially when rates are constantly shifting in 2025. Why should you commit to a rate before you've even closed on your home?
The truth is, locking in a rate without flexibility can be a big mistake. If rates drop while you’re under contract, you could miss out on BIG potential savings. At LendFriend Mortgage, our Free Float Down policy gives you the flexibility that most lenders don't offer by allowing you to take advantage of lower rates without being locked in at no cost to you.
What’s the Problem with Locking In Your Rate Too Early?
When you lock in a mortgage rate, your lender is guaranteeing to provide you a loan at the specific rate you lock-in (all with all the costs and fees associated with that rate). This gives borrowers some peace of mind if rates rise after locking in, but what happens when rates drop after you lock in? Unfortunately, many lenders do NOT offer a way to adjust the rate if the market moves in your favor, Many that do will ask you to pay a fee to access the lower rate, which sucks. That leaves you paying a higher rate than necessary all because you locked in too early.
In today’s mortgage environment, where rates are fluctuate frequently and often fall lower at some point during the contract period, this is a real concern for many homebuyers. You might find yourself locked into a higher rate, even though you’re under contract and can’t take advantage of a lower one. That’s where we think things should be different.
Enter LendFriend’s Free Float Down Policy
At LendFriend Mortgage, we believe you should have the flexibility to capture lower rates without any extra cost or complications. That’s why we offer a Free Float Down policy for our Austin homebuyers and our homebuyers all throughout the country. We’ve lowered dozens of buyers rate by at least 0.125% during the contract period through our Float Down Policy. A few borrowers have even used our Float Down to save just $1,000 on fees. No other lender offers that!
Here’s how it works:
- Lock in your rate with peace of mind: You lock in your rate when you start the process, and if rates drop before you close, we’ll automatically lower your rate to the new, lower rate—at no additional cost.
- No hidden fees or delays: Unlike other lenders, we don’t charge extra to adjust your rate, and the process won’t delay your closing. You can still close on time without the worry of missing out on potential savings.
- No more stress: If rates fall, you benefit without jumping through hoops. It’s that simple.
Here's a quick chart to help you understand our Float Down Policies relative to other lenders:
| Most Lenders | Some Lenders | LendFriend | |
|---|---|---|---|
| Rate Change | No Float Down Options | One Time Option | As often as you want! |
| Savings | No ability to save | Able to Float Down if you can lower your rate by at least 0.25% (N/A to lower fees) | Able to lower your rate to save on fees or your rate (most flexible |
| Fees | N/A | $1500+ (One-time) | No cost to you! |
Why Should This Matter for Austin Homebuyers?
In Austin’s competitive real estate market, every dollar counts. Home prices in the area are high, and mortgage rates are a major factor in the total cost of buying a home. By offering a Free Float Down policy, we’re taking one thing off your plate—allowing you to lock in a rate and know that if the market moves in your favor, you can take advantage of it without any added cost. It’s all of the benefits of floating your rate with NONE of the downside.
What’s the Difference Between LendFriend and Other Lenders?
Many traditional mortgage lenders don’t offer any flexibility once you’ve locked in your rate, leaving you at the mercy of rising rates. Some might allow a float down, but it usually comes with fees or extra restrictions that can make the process complicated or costly – leaving a bad taste in your mouth.
At LendFriend, we want to make things easier for you. Our Free Float Down policy is designed to take away the stress of locking in a rate and ensure that you have the flexibility to adjust if rates drop. Get the peace of mind you deserve and know that you can take advantage of savings if they exist.
Less Stress, More Savings
The reality is that rates change. And when you’re buying a home, you don’t want to be stuck with a rate that doesn’t reflect the market’s best offer before you purchase. That’s why our Free Float Down policy is designed with you in mind. Flexibility is critical to staying stress-free. You have enough to worry about. Why should you worry about being stuck in a rate before closing
If you’re ready to learn more about how we can help make your home-buying experience smoother and less stressful, get in touch with us today. We're here to make sure you have the flexibility and peace of mind you deserve when buying your home in Austin. Give us a call at 512.881.5099 or apply now, and one of our loan officers will be in touch as soon as we receive the application.
