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I'm purchasing a house and it's in escrow. Should I lock in the mortgage rate or see if they go down

  • June 23 2012 - Orange
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Answers (5)

Find a lender that offeres a float down on a locked rate.  We offer it.  Great niche.
  • June 25 2012
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Rates are so low, that I would not risk floating. Even is they did drop by an 1/8 or maybe a 1/4, how much would you payment improve? Rates tend to rise faster than they fall. 
  • June 24 2012
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I'm going to predict that between now and the time you are going to close, interest rates are not going to improve enough for you to be able to get a lower rate.  I believe your downside is greater than your upside.  If you are happy with your interest rate now, I would lock and smile.  In ten years everyone is going to laugh at how low your interest rate is.   
  • June 24 2012
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Before deciding to float your loan in hopes the rates will go down, you need to evaluate how close your purchase price is to the maximum price for which you qualify at current rates.

By floating your rate, you also risk rates going UP.  If the rates go up during your escrow period and you are at the maximum for which you qualify, you could risk your loan approval and ultimately the home purchase.

If you have lots of upside wiggle room, then you can more freely roll the dice on interest rates.
  • June 24 2012
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Depends on your risk tolerance.
  • June 23 2012
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