Float Down Promise™
The LoanVerify Float Down Promise™ is intended to pass along interest rate savings to borrowers if a drastic decrease in mortgage interest rates occurs during their loan process. The loan process is defined as the period from the official loan application to the borrower’s settlement.
The following conditions must be met for LoanVerify to float down the borrowers’ interest rate:
- Mortgage interest rates decrease by more than .25%.
- The borrowers’ mortgage rate must be locked.
- The borrowers’ mortgage is approved by underwriting.
- A 50 basis point charge based on the current loan amount will be added to the borrowers’ closing costs. If a Long Term Lock (180 days or greater), then a 75 basis point charge will apply.
- If the borrowers’ lock expiration date needs to be changed, any rate extension cost will be passed along to the borrowers.
- Only one rate change can be applied to a mortgage loan.
- The credit report, credit qualifications, and borrower’s credit score(s) used to underwrite the borrower’s mortgage have not materially changed from the date of borrower’s original mortgage loan approval.
**The Float Down Promise™ is not available on Jumbo Loans