Podcast Summary: Mortgage Monday | When to Lock and When Not To
The David Greene Show — Episode 85
Date: September 29, 2025
Featured Guests:
- Host: David Greene
- Co-Host/Guest: Christian Bachelder (Broker, The One Brokerage)
Episode Overview
In this Mortgage Monday installment of Real Talk Real Estate, David Greene and his partner/broker Christian Bachelder tackle the ever-relevant question facing homebuyers and investors: Should you lock in your mortgage rate, or should you wait? The episode provides a deep dive into what a rate lock is, how it works, who it’s right for, current market dynamics (including predictions of further rate drops by the Fed), and practical examples tailored to different risk tolerances. With candid stories and practical wisdom, they demystify the choices buyers face in volatile times, emphasizing market knowledge, proactive advice, and the broker advantage.
Key Discussion Points & Insights
1. The Basics: What is a Rate Lock?
[02:10 – 03:08]
- A rate lock is a lender’s commitment to give you a specific rate and pricing for your loan if you close within a specified period (usually 30 days).
- Buyers can lock any time during escrow, not just at acceptance, and choosing the right moment can lead to significant savings.
- Example: If you lock early and rates drop, you may miss out on a better deal.
Quote:
“A rate lock is basically a loan commitment—I'm committed to this pricing, I'm committed to this rate. If it closes this way, I'm satisfied.”
— Christian Bachelder [03:06]
2. What Happens if Rates Drop after You Lock?
[04:47 – 07:16]
- Standard practice: Once locked, you can’t re-lock if rates improve—except with rare “float down” options (offered by less than 1% of lenders, often with caveats or extra costs).
- Broker’s Advantage: Brokers can switch your loan to another lender to “re-lock” at a better rate, provided there’s time left in your contract—but this is logistically challenging late in escrow.
- Direct bank lenders don’t offer this flexibility.
Quote:
“With a broker… we could remove your loan with one lender and place it with another, and we can get a new rate lock commitment with the new one.”
— Christian Bachelder [05:45]
3. Broker vs. Direct Lender: Why It Matters
[07:19 – 12:01]
- Most people don’t understand the difference between direct lenders and brokers; nearly 80% of loans are still issued by direct banks, despite brokers often saving buyers an average of $4,200 per loan (per NMLS data).
- Banks prioritize direct channels for higher profit margins, meaning they don’t have to compete.
- Brokers shop the market—and are more aggressively incentivized to find clients the best rates.
Quote:
“On average, a loan that went through a broker was $4,200 cheaper across the entire country per loan last year.”
— Christian Bachelder [09:09]
4. Convenience vs. Savings
[12:01 – 12:52]
- Direct lenders may offer slightly more convenience (same underwriter, consistent processes), but likely at higher costs.
- Brokers may require more paperwork or navigation of various lender processes, but the financial savings often outweigh these minor inconveniences.
- For ultra-wealthy clients, convenience may trump savings—but most listeners are more interested in optimizing costs.
5. Real-World Case Study: The Power of Timing a Rate Lock
[12:52 – 15:25]
- Example: A client seeking an investment property locked at 7.49%. By listening to Christian’s advice to float the rate (not lock immediately), they ultimately secured a 6.75% rate—a $250/month savings, “just for tracking the market and advising her to wait.”
- The result: $250/month or $3,000/year saved, with no extra points or paperwork, just informed, proactive advice.
Quote:
“It’s only because we tracked the market, predicted it correctly, gave good advice, floated until we felt it was good to lock, and she saved a lot of money because of that.”
— Christian Bachelder [14:28]
6. Risks and Tradeoffs: The Responsibility of Advice
[15:25 – 18:15]
- There’s inherent risk to waiting: If an advisor tells you to float and rates rise, clients may blame the advisor; lack of advice may leave clients indifferent.
- Most loan officers avoid giving direct advice to avoid liability.
- David and Christian’s philosophy is transparency and empowerment: They’ll tell clients what they would do, explain the reasoning, and encourage questions to facilitate informed decisions.
Quote:
“You want the person that says, ‘Look, here's the risk, but here's what I would do.’”
— David Greene [16:52]
7. How to Decide: Your Downside, Your Risk Tolerance
[18:15 – 20:02]
- Christian runs each client through a simple risk assessment: If a 0.25% rate increase would kill your deal, lock now; if it’s not a dealbreaker, you can consider floating.
- Continuous updates: Daily tracking of rates for clients in escrow allows for timely decisions.
- Commitment to put the client’s interest first—brokers don’t profit from saving clients money on rates.
Quote:
“I ask them what their tolerance for risk is... If it works at 7.5, but it wouldn’t work at 7.75, let’s not risk a 7.75.”
— Christian Bachelder [18:18]
8. Building Relationships in a Transactional World
[20:02 – 21:28]
- David analogizes his own frustrating experience in healthcare to the mortgage world: genuine care and relationship-building are rare but invaluable.
- The One Brokerage’s philosophy centers on empathy, advocacy, and lifelong client service.
Quote:
“When you find somebody that cares about what you care about, you gotta build a lifelong relationship with them.”
— David Greene [20:31]
Notable Quotes and Memorable Moments
| Timestamp | Speaker | Quote | |-----------|----------|-------| | 03:06 | Christian| "A rate lock is basically a loan commitment—I'm committed to this pricing, I'm committed to this rate." | | 05:45 | Christian| "With a broker… we could remove your loan with one lender and place it with another." | | 09:09 | Christian| "On average, a loan that went through a broker was $4,200 cheaper across the entire country per loan last year." | | 14:28 | Christian| "It’s only because we tracked the market, predicted it correctly, gave good advice... she saved a lot of money because of that." | | 16:52 | David | "You want the person that says, ‘Look, here's the risk, but here's what I would do.’" | | 18:18 | Christian| "If it works at 7.5, but it wouldn’t work at 7.75, let’s not risk a 7.75." | | 20:31 | David | "When you find somebody that cares about what you care about, you gotta build a lifelong relationship with them." |
Time-Stamped Segment Map
- [00:00 – 02:10] — Market context, introductions, and framing the lock-vs-float debate
- [02:10 – 03:08] — Defining rate lock, how they work, shopping for rates
- [03:08 – 04:47] — Risks of early rate-lock and shopping for lenders
- [04:47 – 07:16] — Float down options, broker flexibility, switching lenders
- [07:19 – 12:01] — Bank vs. broker statistics, market trends, and industry realities
- [12:01 – 12:52] — Trade-off: convenience vs. cost
- [12:52 – 15:25] — Case study: tangible client savings by floating rates
- [15:25 – 18:15] — Navigating risk, responsibility, and advisory philosophy
- [18:15 – 20:02] — Assessing personal risk, daily rate updates, client education
- [20:02 – 21:28] — Advocacy and the value of relationship-based business
- [21:28 – End] — Contact information, calls to action, and closing remarks
Final Thoughts & Takeaways
- Market Expertise Matters: In a volatile rate environment, working with a broker who understands the market and confidently advises on lock timing can net meaningful financial benefits.
- Broker Advantage: Flexibility, market coverage, and competitive pricing often mean better deals than direct lenders, at the expense of a little convenience.
- Risk Management: Rate lock strategies should be tailored to your risk tolerance. Communication is key.
- Relationship Over Transaction: David and Christian stress the importance of finding advisors who truly advocate for you in an industry often stacked against the consumer.
- Empowerment and Education: The show highlights empowerment through financial literacy, honest advice, and transparency—encouraging listeners to ask better questions and expect more from their mortgage professionals.
Reach Out
- For inquiries or scenarios: Visit theonebrokerage.com
- Contact Christian Bachelder: Instagram @theonebroker
- General email: intake@the1brokerage.com
- David Greene: davidgreen24.com (use chat option)