A type of rate lock, plus the opportunity to lower the rate if market interest rates drop significantly during the loan-processing period. Float-downs are more costly to the borrower because they offer more value, and therefore cost the lender more to provide them. Float-downs are diverse in terms of how often (typically once) and when the borrower can exercise this right.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
float time floater