Lock or Float?

67% Rule to floating

Floating a loan is a risky endeavor. Rates can do only three things, rise, fall or remain the same.  When making the choice whether to float or lock, consider this.

If you choose to float:

Rates fall, you win
Rates remain the same, you lose*
Rates rise, you lose

2/3's or 67% of the possible outcomes are negative

If you choose to lock:

Rates fall, you lose
Rates remain the same, you win
Rates rise, you win

2/3's or 67% of the possible outcomes are positive

The only person in a casino who is not gambling is the house because they have the probabilities on their side.  Call First Portland for current rate information that pertains to your scenario.  We'll be happy to help.

* Why do you lose if rates remain the same?  Because you have taken on a huge risk with no positive outcome.  Taking on a risk and not being rewarded is a losing proposition.