Zillow Advice RSS: Question-Discussion-Guide,Mortgage,Wahiawa- HI http://www.zillow.com/advice/Wahiawa-HI/mortgage/question-discussion-guide/ Zillow Advice search results | Zillow Real Estate Lose_Lose Situation http://www.zillow.com/advice-thread/Lose-Lose-Situation/499219/ Hello,<br/>we are in the process of purchasing a new construction home. Our closing date is mid October. Our initial quote for monthly mortgage was $3,200 a month. The developer offers 2 points if we choose their lender. We did this at that time (back in March) because we were looking at a 2.83 rate vs. buying a used home at 3.25.<br/>This past week has been devastating to us, our mortgage quote went up to $3,800 a month. $600 more a month for 30 years is a lot more money than we anticipated. When I noticed the rates on the rise, I asked my lender about a lock, and till this day she does not encourage us to buy one, because she thinks the rates will fall again to under 4%. We already invested about $14,000 cash in the home (upgrades), and now with having to pay so much more, and potentially more if rate rises we will have to cut out things such as private school for our children. I feel as there is no way out. Is there anything that we can do? Back in March when we got into this the lender was almost certain that the rates would not go above 4%, she told us that they are likely to maintain at 3.5 that was the reason we took the risk of buying new, rather than locking and buying used at 3.25. We are very frustrated with this situation, and not really happy with what has happened here. Again, any advise of what we can do about this? Should we just walk away, and wait to buy a home so we can maintain our lifestyle, or look for a cheaper home and take the loss of $14,000 rather than giving up private school? Also what should we do regarding our lender and the lock? This is becoming a HUGE gamble.<br/>Thank you for any advise and suggestions<br \><br \>2 replies Thu, 27 Jun 2013 08:20:00 GMT http://www.zillow.com/advice-thread/Lose-Lose-Situation/499219/ 2013-06-27T08:20:00Z