Profile picture for user5012802

Mortgage rate question

Hi everyone,

I am a first time buyer and was just quoted a price on my mortgage interest rate that I can lock in now.  I am putting 5% down on my house and have a special "physician's loan" that will not charge PMI.  The quote was 30 year fixed rate at 4.125% with "0" points or 4.25% with credit towards my closing costs of .5%.  Is there any benefit to waiting or should I just lock in the rate?  Is this rate consistent with the market?  Thanks for any help you can be- I truly appreciate it.
  • August 21 2012 - Dayton
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

Don't be disappointed if the OP doesn't respond, this question is/was 5 months old until the guy before you posted on it.
  • January 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Do you have an accepted offer yet?  Was the quote for a 30 or 45 days lock.  if you don't have a contract in place locking in now is not a good idea even with 45 days.  There are cost associated with extending or breaking your lock period.  It will depends on what your seller is willing to set for a closing dates.  There are many other factors to consider when purchasing a home.  Let me know if you have any additional questions.

Good luck!

BQ Tranthien
  • January 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for TheMurrayGroup1
Your loan officer shouldn't be locking your rate in until you get an accepted offer on a house. If that is the best deal they can give you at this time you can float which means you are hoping rates go down before you lock in. It is risky because if rates go up then you may get a higher rate. The deal that you have sounds reasonable in light of what you are getting. One thing you could do is call another lender and see what they can do for you and evaluate the two offers from both banks to see what the best deal is.
  • January 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

4.125% or 4.25% without paying MI is a really good deal.

If you were to go with a non physicians loan you would be looking at 3.625% rate with .67 monthly MI, so the payment would be higher.   (these are estimates)  

Rates have been on a slow upward trend over the past few weeks. Mortgage rates are closely tied to the 10 year bond. We have seen the yield on the 10 yr bond rise from 1.45% to 1.85% in a short amount of time. I highly doubt that they will come back down anytime soon.

If it were me, I would lock in the rate.  I feel that it is more likely that rates will get higher vs get lower. Wednesday could be a bad day depending on the results of the housing market and the notes from the last FED meeting being released. Both are highly important events and could cause rates to go up.
 
  • August 21 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
 just lock in the rate
  • August 21 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.