What is the difference between a rate lock and a float status on an application?

• A. A rate lock guarantees a specific rate for a set period; float means the rate is not locked and can move with market changes.
• B. A rate lock means the rate will move with market changes.
• C. Float status locks the rate.
• D. Rate lock has no impact on closing timing.

Answer: (A)

The main idea is that a rate lock fixes a specific interest rate for a defined period, protecting you from market swings during that window. Float status means there is no lock in place yet, so the rate can change with market conditions until you decide to lock. This matters for budgeting and closing timing: with a lock, your rate and payment are predictable for the lock period; with a float, the rate can rise or fall until you lock, and you may face a different rate at closing if the process takes longer than the lock period.