You believe that interest rates may drop and have decided not to lock in an interest rate on your loan during the loan commitment process.This is called a:

Question

Quizplus · Accepted Answer

Choosing not to lock in an interest rate during the loan commitment process, in anticipation that interest rates may drop, is referred to as "floating" the rate. This means the borrower is taking a risk that rates will indeed be lower at the time of closing.

You Believe That Interest Rates May Drop and Have Decided