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Profile picture for Paskoo

Is it Government's fault, media's fault or my own, that I did not lock the rate in January.

Rates were less than 5 for 30-year fixed and less than 4.5 for 15 year fixed. I did not request a lock at that time, because of so much news about Governments planning to lower 30 year fixed to 4.0-4.5% that I decided to wait more. Who's is to blame.

Paskoo
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February 15 2009 - Babylon
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Profile picture for workabee
It's your fault. Rates are down again though so lock away.
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February 16 2009
Profile picture for sunnyview
I was in my loan officer's office within 5 minutes that I saw the rate was near the mid 4's with my completed application in hand. I heard the buzz too about 4 or 4.5% but that 4.625% rate was good enough for me so I took it. I locked it as soon as I heard it and literally before I left the office less than 10 minutes later the rate has bounced up again on the next rate sheet. Don't kick yourself. Many folks were floating hoping for the much talked about rate not just you. I was just grateful to have the bird in the the hand. If rates do go to 4%, I will still be grateful that I had the opportunity to refi at a great rate. Rates look like they're coming down again. This time when you see your rate lock it. You don't need the ultimate bottom either.
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February 16 2009
Profile picture for ThreatConDelta
In 8 yrs from now US: see Europe comment above ;)

8 Years, how about this summer!
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February 16 2009
Profile picture for SoCal_Engr
Paskoo,

Simple answer is "you". The key phrase in your question is "...that I decided to wait..."

While it is easy(ier) to blame this decision on external factors (i.e., government "plans", media hype, etc.), I believe the decision typically resolves to two underlying reasons...

1) Uncertainty - Too many don't do enough homework to determine what I consider to be the two important factors to know. The first is the "minimum decision point", the rate/cost above which it doesn't make any sense to pull the trigger. This is a personal decision, and takes into consideration factors like "immediacy of need", "cash flow", etc. The second is what I call "incremental benefit", or "how much better off will I be for each .125 improvement in rate?" My guess is that .5% on the rate will not be that huge an improvement for most, so knowing this enables a potential borrower to identify the point where the risk/reward of waiting-v-locking comes into play.

2) Greed - Call it what you want, too many are trying to squeeze every last penny out of any deal. As much as I disagree with the current Pres on many issues, he did say one thing that makes universal sense..."Don't let 'the perfect' stand in the way of 'good enough'". Knowing the two decision points above can help with this, but some people just can't resist trying to get the "absolute best deal".

Best of luck.
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February 16 2009
Profile picture for litarvan
In socialistic Europe, you go ahead and blame the government.

In today's US you are to blame yourself.

In 8 yrs from now US: see Europe comment above ;)
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February 16 2009

Pas,
Simple answer is you (and I'm not scolding you).  It is your loan,  your lock, your life and your decision. There has been much "news" (which is really rhetoric) about lowering this and that.  Here is reality.  Mortgages are a market like stocks and you have now seen that the GOVT can;t control the pricing of a market, whether it is stocks, bonds or even oil.  They have artificially moved rates lower already.  The good news is that they are not that far from their recent lows.  The bad news is that when I emailed out to my locals, friends and family that I had 4.5% right at Xmas... The replies came rolling in to me... They replied with ... Martin, please contact me when they hit 4% and then we will apply.  Greed and fear are very powerful.  Just find a good rate that makes sense or pick a reasonable target and get your loan completed and then you will prosper.  I hope your scores are high because if they aren't, mortgage pricing just got more expensive recently based  upon scores and purpose.  Good luck and keep rockin'.

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February 15 2009
Profile picture for Clearpoint
You bring up a interesting point, what role the government and media are playing in the current market.  The government has certainly done enough leaking of information (real, imagined, and confusing) which the media are all too quick to spread quickly yet they are slow on correcting the information.

Obama vitalizes the new Treasury plan and the White House pushes back an announcement of the plan in an effort to push the Stimulus plan, and Wall Street and the Media eat it up.  What happens next, nothing, the plan is still a work in progress and no details are released.  It's just a minipulation but it's hard to resist the carrot when it's dangled even if it's only the possability of a reality.  How many people waited for the 4% or 4.5%?  How many people waited for the $15,000 tax credit?  People were manipulated even though we should no bettter.
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February 15 2009
Lock it when you like it or lose it!

Ignore the media, they don't pay your bills. I can't believe people have waited all this time for rates to dip below 5% only to sit on their hands and lose it trying to get an additional 1/8th. It's pure irrational greed!

$.02
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February 15 2009
Paskoo..... I forget your other thread but depending on your credit,FICO score, and LTV you are really not that far off those rates.  Unfortunatley you never know the bottom of the market until you start going back up.
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February 15 2009
 
Related Questions
Is it Government's fault, media's fault or my own, that I did not lock the rate in January.
Profile picture for workabee
Latest answer by workabee
February 16 2009 | 9 answers
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