Rate Lock Float Down

I purchased a new build home that will be completed in 02/2023. I went through the builders lender and got locked into a 6.1% rate for one year. I decided to buy points, bringing my rate down to 5.875%.

My lender allows for one float down between now and 30 days prior to closing. My question is, if I float down what happens to the points I bought? Do I float down to the current market rate and then they apply the points I bought after? Or do you just float down to the current market rate and the bought points were a waste?

submitted by /u/Gigimof
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I purchased a new build home that will be completed in 02/2023. I went through the builders lender and got locked into a 6.1% rate for one year. I decided to buy points, bringing my rate down to 5.875%. My lender allows for one float down between now and 30 days prior to closing. My question is, if I float down what happens to the points I bought? Do I float down to the current market rate and then they apply the points I bought after? Or do you just float down to the current market rate and the bought points were a waste? submitted by /u/Gigimof [link] [comments]

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