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What is the Alternative to a Lock-In?

The alternative to locking in an interest rate is to let it float.

If interest rates rise before the lender finalizes your loan documents, you will pay a higher interest rate on your new loan than you would have if you had locked the rate. However, if interest rates drop during the loan-processing period, you will get a lower interest rate on your loan. For a price, some lenders will allow you to lock in with a float-down option. This entitles you to a lower interest rate if rates drop after you lock in.

Source: Inman News