Rate Float Downs
For Mortgage Loans
Another Benefit of Going Direct!
Rate float downs are available with most of our mortgage loan products.
Simply click the button at the bottom of the lock confirmation screen within DirectWare® and select your new rate.
Clickpath: Log in >> Choose your desired loan by double-clicking the loan in the "Recent Borrowers" column on the left OR by entering the borrower's name or the loan number into the "Loan Search on the left and clicking "Find". A list of search results will appear. Choose your loan by double clicking the correct entry >> You will be taken to “Loan Choices” >> Click “Locked” located in the row of your desired loan program (alternately, you can click the date next to “Loan Expiration”) >> click the “Float Down” button at the bottom of the window that opens >> Select your new rate >> click “Save”.
Rate Float Down Policy:
A one-time float down option may be available for locks in which the price has improved, and are subject to the following conditions:
Float Down must be done before the loan receives final underwriting approval and the loan is approved for docs.
- Loan must be within 10 days of funding. (If the lock expiration is not within 10 days, a float down may be granted if the lock expiration is moved to 10 days from the date of the float down.)
- Loan must close and fund by the original lock expiration date
- Loan program and term must be the same as the original loan program and term at time of lock
- Price will be improved to current market price plus a float down adjustment, for pricing of the same lock period as the original lock period. For example, if the loan was originally locked on a 30 day price, the current 30 day price will be used to determine the price after the float down option has been exercised. The float down adjustment may vary by loan program. If a loan has been previously been extended, the extension cost will be added to the new price.
- Loan Program Changes are allowed after the float down option has been exercised, and the price will be determined by our current policy for changing loan programs*. If a loan has been previously extended, the extension cost and the float down adjustment will be added to the new price.
- Lock Extensions are allowed after the loan has been floated down as long as the loan has not been previously extended. Only one extension per loan is allowed.
Exceptions to the above conditions may be considered by the price desk. Exception requests should be submitted in writing, by the Loan Officer through the Account Executive assigned to your account. (DMC reserves the right to withhold the Float Down program from some unique, niche loan programs.)
Time Available: Floats downs are available online until 4:00 pm Mountain time.
* Requests to change the loan program of a current lock may be granted at the worst of the original lock price or current lock price, when available. As market conditions dictate, an additional market adjustment may be charged.