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Profile picture for sixer06

Should I wait or lock?

We are closing late July/early Aug.  Just got quoted a rate at 6.125% being w/in 60 days.  Should I lock or wait wait in hopes of it returning to the high 5s?
  • June 11 2009 - Indianapolis
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Answers (12)

You asked if you should wait to lock the rate ... weight is what broke down the wagon and sunk the ship!

Negotiate for the seller to pay points to buy down the interest rate for lower payments and annual interest costs. You should be able to deduct those "seller-paid points" when filing your income tax returns next year; this will save you tax dollars (get advice from a qualified tax specialist!).

However, get the best rate available now! You can always reduce the rate later if it comes down. "Don't count your chickens ... " "A bird in the hand ...", etc.
  • June 11 2009
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Profile picture for CentralValley
Do you have good credit (i.e. 720 or better)? 

My local credit union here in Fresno,CA is quoting 30 year mortgages with 20% down, zero points and 720 credit score at 5.875%. 

You might want to wait if you have 20% down payment because this rate seems a little high for today's market.
  • June 11 2009
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Profile picture for Brian G. Allen
Any points w /quote? if you are qualified at this rate. Hope is the feeling that what is wanted.   If we believe past history rates wait for no one and they will be higher and then lower.  




  • June 11 2009
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Robert,
How do you know they have room?  
  • June 11 2009
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I would honestly hang on for a while because even at 6.125%, you still have some room to breathe if the 10 Yr TSY can maintain some stability.  If the market does bounce back and you can secure something in the mid to upper 5s for a 45-60 day lock, I would jump on it.  Just keep your options open...
  • June 11 2009
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Mystik,

The fed meeting has nothing to do with what happens with mortgage rates.  The meeting and more importantly what becomes public about the meetings' minutes and what the fed is likely to do will have an impact not on rates but investors.  Investors react to that information, the fed cannot simply change mortgage rates.  It just doesn't work that way.
  • June 11 2009
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mystikdragon----what does the fed meeting have anything to do with rates. Please explain.
  • June 11 2009
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Profile picture for mystikdragon7
ooops sorry double post
  • June 11 2009
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The million Dollar question and the only accurate answer is Maybe!

The volatility is out of control.  If you are willing too loose, you may want to roll the dice.  If you don't want to or can't afford to loose Lock.
  • June 11 2009
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Profile picture for mystikdragon7
If you can wait till the 23rd and 24th of this month the FED's are having another meeting to discuss the rates.  From that meeting the rates could go back down to where they were a few weeks ago.  But then again there's no telling what might happen, they could keep them the same.  If it were me I wouldn't lock in just yet and see what happens after the FED's meeting.  I would also shop around for something better.   
  • June 11 2009
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Rates have come down a little bit this morning, but you have to understand if the rates do not come down for your particular scenario you may face an even higher rate.  If you can handle all possible outcomes of playing the market, I may wait.  It is dependant upon your situation though.  I hope this helps...

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  • June 11 2009
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Wait.  Shop around a little bit while you're at it.

  • June 11 2009
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