Ny Interest Rate Lock-In Agreement

It is up to the borrower to look for a freeze on interest rates. If they choose not to do so and they do not have an interest rate freeze, this is called the “free float” of an interest rate. This is not a bad strategy if interest rates generally fall, but it could be expensive in an environment of rising interest rates. It is up to you to choose to attach yourself to an interest rate. You can choose that the interest rate varies with the market, which means that the interest rate can rise, stay the same or fall depending on market conditions. If you opt for a certain interest rate, this is your interest rate, regardless of the direction of the interest rates. Please note, however, that if you opt for an interest rate, you must close within the agreed deadlines. Some lenders may give you the option to “break your lock” if prices improve significantly after they are blocked.