Mortgage Rates

b/c I am clueless

should we lock in now at 5.375 with no points? broker sounds like he wants us to lock it....he thinks rates are going to go up and stay there for the next few weeks - he was talking about the market but i have no idea what the hell he was talking about - and of course my DH is pretty much out of all contact and he is the one who knows about these things ....he said we have until friday to lock in 5.375 b/c a lender is giving that rate as a promotion and it ends friday....

Re: Mortgage Rates

I would lock it, we just locked at 5.5%.Rates weren't supposed to go up but it seems like they are again.

Re: Mortgage Rates

You shouldnt really lock in until all the necessary steps have been taken ie, inspection and appraisal. Normally you can lock in for 30 days, what if there is a slight hold up or something. You can also lock in for 10 days and get a better rate. We locked in a little over 2 weeks ago and got 4.875.

My advice is to wait

Re: Mortgage Rates

is this for a refi or a purchase? We just looked into this today for a cash out refi 30 year fixed no points. We think we are going to take it.

We already own our house though so it may be diff. Purchases can get a little tricky.

eta not sure where you are looking but our lock would cost a .5 point refundable at closing and would be for 60 days.

Message edited 8/5/2009 5:09:46 PM.

Re: Mortgage Rates

we just locked in at 5.375% on monday. thank God we did, because by tuesday my loan officer emailed me that the rates had jumped to 5.75% and only look like they're gonna be going up!

Re: Mortgage Rates

this is for a purchase

i dont really know how it works - i do know that in florida closings are generally a lot quicker than up here....

we went into contract today and our closing date is 9-4 - so 30 days....

Re: Mortgage Rates

i'd say lock it. we locked at 5.5%. the market is always going to be volatile, so just get it done while its still under 6%.

Re: Mortgage Rates

we locked in at 5.25% a few weeks ago, but we had to pay for 2 pts. it was worth it to us in the long run. we are saving $$ now living with the ILs, the house doesn't need any work done, and we plan on living there for many many years so we will recoup the $$.

5.375% would have cost us 1 pt. so i think that is good.

Message edited 8/5/2009 8:24:53 PM.

Re: Mortgage Rates

wait until friday... no? see what happens? if they go up, then lock in.

Re: Mortgage Rates

When we locked in, the mortgage guy told me that if the rates went down by .5%, they would lower our rate to the lower amount (w/out points).

Did u get approved yet? It took us almost 3 months to get approved...the porcess was a lot more exhausting than I expected.

Re: Mortgage Rates

I've been watching the rates for months now, and they seem to be slowly creeping up, I would lock in.

Re: Mortgage Rates

hi just wanted to let you know that we locked in today for a cash out refi @ 5.375. I think they may creep up and we wanted to get it while they were still in the 5's.

GL!

Re: Mortgage Rates

We locked in a few weeks ago at 5.125 (no points) and decided to buy a point so we ended up locking in at 4.875. The rates have only gone up since then so I would lock!

Re: Mortgage Rates

I just want to say if you want to "buy down" the rate by paying points make sure if it's even worth it. For example we had the option to pay a point to get closer to 5% but it would only save us $30 a month.

Re: Mortgage Rates

Re: Mortgage Rates

he locked us in at 5.5 couldn't get the 5.375 or lower without us paying for it........

he told DH that the unemployment rates are coming out and they aren't going to be as bad as anticipated and something about how that has something to do with the rates going up....and some other stuff going on to - i really am clueless with how all that stuff works so i just took this guy's word for it.....

he said that if the rates go down to 5.25 or lower he will be able to get it for us at no cost - but he wanted to lock us b/c he thinks the trend is that the rates will keep going up....

we could buy a point and it would cost us $1,500 and doing that would lower our payment by $23 a month - but for it to benefit us we'd have to be in the house almost 5.5 years....we don't know if we'll be there that long - so we're not going to do it....

we'll wait and see if they drop again - i doubt it....i'm a little disappointed though b/c we've been looking for so long and for awhile we were thinking we could get a rate lower 5%.....but rates are still at a historic low (or at least that is what they are saying) so i guess i shouldn't complain....

Message edited 8/7/2009 9:29:53 AM.