Earn $25 CASH per qualified ChartSnap Founder referralUnlimited referralsNo purchase required—Join the Affiliate Program →

Mortgage Glossary

Float-Down Option

Mike Starr·Reviewed August 2026

A float-down option is an add-on to a mortgage rate lock that allows the borrower to take advantage of a lower interest rate if rates drop after the lock is set. Lenders typically charge a fee for this option. It protects borrowers in a falling rate environment while still providing the security of a rate lock.