Sign in to follow this  
Followers 0
Mokes

Buying a house, and "locking in" HELP!!!!

Rate this topic

10 posts in this topic

Guys,

 

I need some advice. My wife and I are in the midst of buying our 1st home. When I spoke to my lender about getting the loan, the rates were 5.5%.

 

They are NOW...5.75%. They went up for 2 days in a row. Monday I have to make a decision on whether to lock in on whatever they are then, or wait?

 

Anyone have an idea on how I can judge this? I'm scared I will wait, and it will be 6 % before I know it, and need to buy 2 points to keep it where I need.

 

Any help will be SOOOOOOO helpful!!!

Share this post


Link to post
Share on other sites

That's the funny thing about locking in. You have to have a feeling for how the rates are going. Obama said the decline is starting to lessen so who knows how the lenders take that advise. How long have you been waiting to lock? When is your closing date. All play a factor...

Share this post


Link to post
Share on other sites

personally i would lock it in, i think with the way they are reporting stronger home sales i don't think it will go down any time soon.

 

check with your lender and see if they will let you lock it in and then float down with it if it drops, thats what we did in april and got 4 1/2 with one point on a vacation home.

Share this post


Link to post
Share on other sites

It also depends on how close your are to buying and how long they'll let you lock in the rate. You can always lock in now with one bank and if you find a lower rate, go with another bank - but don't quote me.

Share this post


Link to post
Share on other sites

i got lucky when we locked, i waited until basically the last minute because i had a good feel for how the market was going and was in daily contact with our mortgage broker. im very suprised you are being quote at 5.75, if anything you should be in the 5.5 range, and they are trending down this morning so even below that. i really doubt rates will get anywhere near 6% anytime this year, but the only person who can make the decision is you...

Share this post


Link to post
Share on other sites

I don't see it going to 6% unless you have a troubled credit past or unique borrowing needs. Try wells fargo...they seem to be opening their purse strings lately.

I just closed on a 30 year fixed super jumbo at 5.25%. As a side note there should be no need to pay points...or again unless you have unique needs or severe credit problems there is no need to use a mortgage broker.

I have several friends who own mortgage firms and all six of their offers were higher..some even included points....than the offers we got from just walking into Wells Fargo and Bank of America.

Remember in your case if you are borrowing less than about $730,000...you only need a 580 credit score and you would qualify for an FHA loan....so with that as a backstop, for a lender there is not alot of risk in the transaction...so you should be able to get a competitive rate. Only side note is if you do use an FHA loan it would be a more time comsuming process... and there is some sort of a one time insurance payment that you have to pay at closing or roll into the mortgage.

Share this post


Link to post
Share on other sites

Go to Bankrate and input your criteria. 5.75% seems pretty high unless you have a low credit score or are making a very small down payment. Don't dismiss the online lenders either. Most painless mortgage experience I ever had was a refi done completely online. Even the appraisal was just a phone call. Only fee I paid was $10 for some service fee that I didn't argue with. And the rate I got was .75% less than anything a local lender would do.

 

The place went out of business less than 5 years after though. Maybe their deals were too good. wink.gif

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to register here in order to participate.

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.