Posted on: 07th Dec, 2010 11:17 am
Hi guys,
I'm applying for a mortgage and I am monitoring the interest rates daily. The rates, recently, have been going up almost daily.
Do you guys think it's worth locking-in now? I am expecting to close in early January, and before I close, I have an IR float down option which I can use just once.
What should I do, lock-in now or wait some more to see if the rates would go down a bit? Please advise. BTW, the current rate that I could get is 4.5% with 0 points for a 30yr fixed rate loan.
Thanks.
David
I'm applying for a mortgage and I am monitoring the interest rates daily. The rates, recently, have been going up almost daily.
Do you guys think it's worth locking-in now? I am expecting to close in early January, and before I close, I have an IR float down option which I can use just once.
What should I do, lock-in now or wait some more to see if the rates would go down a bit? Please advise. BTW, the current rate that I could get is 4.5% with 0 points for a 30yr fixed rate loan.
Thanks.
David
If you can get that rate right now, lock it. You have no risk because of the float down option. Rates are getting killed today.
Just curious if you were able to lock that rate.
No, I was not. I am so depressed right now.
They were not able to lock it due to the extreme market volatility yesterday. Now they are telling me that the rate is at 4.875.
I don't know what to do. Should I lock?
They were not able to lock it due to the extreme market volatility yesterday. Now they are telling me that the rate is at 4.875.
I don't know what to do. Should I lock?
If you are closing in early January, you should be looking at a 30 day lock which should be a hair better than a 45 day or a 60 day lock.
The bigger the loan, the greater will be the difference in monthly payments. You need to decide if you wnat to take the chance on a rate going to 5.000% or higher versus hoping it drops lower.
The closer you get to closing, the less likely you will see a drop in rates. There is not enough time for the market to recover, if, in fact, it ever will.
If you lock, your float down option will probably never happen.
For your own ease of mind, lock.
If you are a gambler, do not lock
The bigger the loan, the greater will be the difference in monthly payments. You need to decide if you wnat to take the chance on a rate going to 5.000% or higher versus hoping it drops lower.
The closer you get to closing, the less likely you will see a drop in rates. There is not enough time for the market to recover, if, in fact, it ever will.
If you lock, your float down option will probably never happen.
For your own ease of mind, lock.
If you are a gambler, do not lock
