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Replies (18)
- ELender
- Contributions:1479
When you have your contract in hand...
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Lock before the Fed announces today, my crystal ball says rates headed north in the short term.
No CL! Don't say that...
- Brian Walek, "Mr. Mortgage"
- Contributions:16
Watch the market close, have your morgtgage broker / consultant keep you informed !
- pmays1
- Contributions:14
Ben,
Subscribe to a daily newsletter----like mine on my website...or Bankrate.com offers some sound advice.---Phil
- Mike Smith, MBA, MPM, "MortgagePlanMan"
- Contributions:135
A bird in the hand is better than two in the bush. See my blog: www.activerain.com/mortgageplanman which highlights yesterday what to expect today.
As accurately called, the FED cut rates by .25% and signaled an end to the rate cuts which everytime the FED has cut short term rates, the long term mortgage has gone up in rate. With this bonds can settle down to less liklihood of future inflation and higher rates to deal with that.
I would 100% float this week ahead of PCE and ISM reports tomorrow which have HIGH sensitivity to inflation. Friday we have non-farm payrolls, unemployment, hourly earnings, and average work week #s, all of which have HIGH sensitivity to inflation.
We will see a 5.50% 30 yr fixed at par this week fellas.
Mike
- Andrew Adams, "203K Specialist"
- Contributions:9349
We shall see Barry...I mean Mike...I know I would like to see it!
AA I actually agree with Mike, We could easily see 5.5% Thursday, PF is already at 5.625 with some rebate depending on LTV. TB&W suddenly got strong and may also be close tomorrow.
TB&W had a 20 year priced at 5.375 100.135 today.
- frank1003
- Contributions:266
No lender "locks in" a rate on a "pre-approval." Rates are locked when a contract is signed and an application is made. Imagine a lender doing a pre-approval and offering to "lock-in" a rate one-two-three months before the borrower even finds a house and signs a contract! It just don't work that way, Ben. If somebody tells you it does, you're being lied to.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Did I say that it won't happen?
I honestly have no idea if it will happen. As I said above I would like to see it, but won't be shocked if we don't.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
BB,
The answer is in your head.. No not Dorothy from the Wizard of Oz, but ask yourself if the rate/point cobination that you can lock in today (that is if you have property address, etc and a loan, yada yada as you need it all to really lock with 99.999999% of the folks) Anyway, if that is your pain threshold.... meaning anything higher will be a disappointment.... LOCK.. it is not a monthly payment differential, but the feeling you LOST... Some Lender will/would renegotiate a lock IF the market changes dramatically, but it is hard to time the market.. As far as the lowest fixed rates most of us have ever seen.... Need to call Michael J. Fox.... Summer... JUN 2003, and JUL of 2003 went up over 1% in 5 weeks, so nobody knows the future regardless of tools... A good LO makes no more or less depending on market movement, so it is your call, but this will come down to comfort level for you and peace. Good luck in your decision.. It is yours.
- OU SOONER RICK
- Contributions:3
Mortgage Plan Man - Care to put $20 on that? Whats this weeks winning LOTTO numbers?
- saw413
- Contributions:2
What are the interest rate for a 15 fixed with a excellent score of 801 for me and 815 for my husband.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Loan size dictates it slightly, but beginning with ZERO POINTS AND ZERO ORIGINATION and nothing Silly in the Lender Fee area... 5.5-5.625% would not surprise me... Unfortunately, that great score and it is great doesn't affect 15 year loans. I think you should try to keep JUNK FEES at a minimum if you can. You are a welcome sight to Lenders so thank you for asking. You can use points/origination to move a rate down, but your amortization is so much shorter, it is very difficult to justify it in most cases. Ask for the lowest stripped to the walls rate. Good luck.
- George DeVine, "George DeVine"
- Contributions:857
Nice call on rates, Larry Kudlow, I mean MortgagePlanMan.
BenBen,
Actually, there is a Lock and Shop product that will allow a 90 day lock with a float down within 60 days. No additional cost. If you are purchasing in RI, MA, CT, FL. drop me a line.
Some lenders have a lock-and-shop program where you can lock in a rate while shopping for a home. Otherwise, you can't lock in a rate until you have a signed Purchase Agreement.
No one can predict where interest rates will be tomorrow, next week, or next month. Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. However, in today's market, I usually give this general advice: If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.
- benjaminbenjamin
- Contributions:103
thanks for all the advice..
locking in rate
What advice can you give on when and how is the best time to lock in a rate when getting pre approved??? thanks
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