Float is the time lapse between the time of completing the loan application and closing the transaction, a borrower may choose to bet on interest rates decreasing by electing to float.

Floating is essentially choosing not to lock the interest rate. Since it is the borrower's responsibility to lock his or her rate within 5 business days before the closing, choosing to float is considered risky and may result in a higher interest rate.

Interest rates change on a daily basis sometimes two times or more a day depending on the lender. The upfront fee is based on how long the rate is locked and can cost anywhere between 1% to 5% depending on length of time you are requesting the lock, the more time the more the costs.

Request information from your mortgage broker or lender regarding lock procedures.