A “floating fixed rate” is the “jumbo shrimp” of lending terminology, isn’t it? “Float” and “lock” refer to your rate lock, not the type of loan. While floating, your future fixed rate is yet to be determined. Interest rates change with market conditions at least daily — sometimes multiple times a day. “Floating” means your rate is “TBD,” subject to these changes. Locking secures the interest rate you’ll pay on your loan, protecting you from market volatility.

Loan types are either “fixed” or “adjustable”. Fixed means fixed. Once you lock, that’s your rate for the entire loan term. And if you’ve chosen an adjustable-rate mortgage, you’ll still “lock” the initial rate.