Float-Down

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Definition: Float-Down

Float-Down
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Full Definition of Float-Down

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/float-down/
Modern Language Association (MLA):
Float-Down. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/float-down/.
Chicago Manual of Style (CMS):
Float-Down. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/float-down/ (accessed: April 19, 2024).
American Psychological Association (APA):
Float-Down. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/float-down/

Definition Sources

Definitions for Float-Down are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.