Post # 1
- Wedding: October 2011 - Bed & Breakfast
The seller accepted our offer (yippee!!!!!!) and we are waiting to receive their signature on the contract so that we can sign it and it will be ratified. According to our loan officer, we will be in a position to lock in our mortgage amount and interest rate as soon as the contract is ratified because he already has all of our information in hand. Rates seem to be declining right now, so we are trying to figure out when the best time is to lock everything down. How did you make your decision? What factors did you consider?
Post # 3
We locked down right after everything was signed, because we closed pretty quickly after that. Rates were low, and weren’t expected to change much so we didnt feel we needed to wait.
Post # 4
I don’t know this answer but I thought I heard rates fluxuate by the hour. Well, congrats on your seller accepting the offer.
Post # 5
We’re going to lock in as soon as ours is approved.
Post # 6
My husband researched rate trends and decided it was best for us to lock as soon as we could. He was right 🙂 the rate later was .5% higher than the day we locked.
Post # 7
Lock it in as soon as you have an accepted contract. There is no way to time the mortgage market (if you could, everyone would have the lowest interest rates!). It is bound to go up or down a little bit between when you lock in and when you close, but it probably won’t be enough to make a huge difference in your payments.
Post # 8
You really don’t have a lot of flexibility unless you’re closing date is pretty far off. If your closing date is in 30 days then you really need to start the mortgage process and lock in at what rates are at now. Even if your closing date is 60 days rates are not going to fall enough in that time period that it will make a huge different over the life of your loan. I would just go ahead and start the final paper work on your mortgage approval. For me the security of knowing your financing in place is worth the 1/8 of a point you might save by waiting. And you never know, they could turn around and go up. I work in the financial services industry and this is just a really crazy time, from day to day you really have no idea what’s going to happen.
Post # 9
Yeah rates literally change every hour, so it is difficult to tell. Honestly, if it sounds like a good rate as soon as your paperwork comes back, I would just lock it. You risk having rates go up if you don’t.
Post # 10
- Wedding: October 2011 - Bed & Breakfast
Wow… by the hour? That’s kinda crazy.
Thanks for all of the input on this. We are just waiting on the seller to complete and sign the paperwork on their end so that we can get things moving on our end. le sigh.
Post # 11
@lovekiss: Rates change all the time actually. It’s really hard to predict, but chances are it won’t change dramatically within days or weeks. We bought our house in March 2010 and paid a point ($1,000) to secure our lower interest rate at 4.87%, unfortunately mortgage rates dropped much lower afterwards. My sister was refinancing at the time and got some kind of family rate for my other siblings to refinance on their house too. Our new rate is 4.35%, no pts or fees and we did it in October 2010. At least we claimed taxes on the point we paid originally. Good luck! Do shop around and see who can offer you the best rate! We went with the recommended person by our realtor, but later found out her rates weren’t the best.
Post # 12
We are dealing with this right now. We were approved for our loan about a month ago, at which time we decided not to lock in the rate, but only because we knew we couldn’t close in time to not be penalized by the bank. Low and behold, the rate we would have locked is now about .26% higher than it was yesterday. So it has dropped considerably. We are considering locking in now, but since closing is so up in the air with coops in NYC, we dont’ want to risk it since the penalty of not closing within the time frame for our rate lock will be over $10K. We have no control over the closing date, we don’t even know when our board interview is yet. They have the right to take as long as they want to get around to us though and we can’t do anything about it.
But if I had to guess (don’t quote me on this) I think the rates will continue to go down. I’m no economist, but I just don’t see things improving lately overall so it would make sense if they went down.
Post # 13
Do you get to make a one time adjustment after locking the rate? Some mortgage companies or banks will let you lock and do a one time adjustment if the rate drops. I talked to two different companies, and did not realize that the one I did not pick allows this, while the one I went with screwed me. (Well, they didnt *really* screw me that bad, it was maybe by a tenth of a %, but still, I would’ve taken anything!)