Should we lock in?

We don't have a closing date yet, still waiting on "clear to close" but everyone is optimistic it will be as early as 8/28 or within the next few days. We can lock in at 5.125% but we'd have to close by 9/2. Theres a chance we might not close that early. Should we lock in the rate or float it a bit more?

Re: Should we lock in?

I would lock in. That's a great rate!

Re: Should we lock in?

If we aren't able to close by 9/2 and then the rate goes up, how does that work, do we have an option to extend our rate or just out of luck?

Re: Should we lock in?

usually you can extend the rate but for 1/2 a point. To break the lock is something like 1.5 points. (or at least it used to be!)

eta if you arent clear to close bc of something on your lenders part I would speak up and ask if they would extend the rate at their cost.

Message edited 8/18/2009 3:39:27 PM.

Re: Should we lock in?

Rates were 5.5% last week. It is very low right now and I am showing 5.125% as well.

I would ask for a 45 day rate lock (without a fee) and see what they say.

Rate lock durations are negotiable IMO.

Re: Should we lock in?

we just went through this and we locked w/o a closing date.

we called our lawyer, our real estate agent (and had her call the seller to make sure they were ready to close asap) and called the mortgage company. they all said as long as everyone else was ready to go, we should be fine to lock. why don't you call all your people and feel them out. but at that rate, i would say you really should lock it in!!