Lock or Float?

0.10 Dollars($)

Is today a good day to lock or to float that is the quesiton?

cliff · Posted: Thu May 29, 2008 8:00 pm Post subject: Lock or Float

Sorry that was me who made the last post.

So is today Friday May 30th a good day to "lock" or to "float?"

smckaybiz · Posted: Thu May 29, 2008 8:16 pm Post subject:

I'd say lock it in while the goings good. Even if rates continue to fall some I couldn't see them going much lower than they are right now and you're better safe than sorry.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi cliff,

You are a Market Analyst right...So I thought you can suggest us better Smile

BTW for me it depends upon the borrower whether it is affordable or not. The rates are still very low. So not bad idea to lock it now.

Best of luck,
Larry

smckaybiz · Posted: Sat May 31, 2008 6:02 am Post subject:

Cliff, when you say lock or float are you referring to a HELOC that you have for are you talking about refinancing an adjustable rate mortgage. Most HELOC's allow you to lock in your rate for a low fee and it doesn't commit you to that rate forever. The bank I work for only charges $50 to lock your rate in and when people ask me if they should I always suggest doing so because if the rates keep going down there is nothing stopping them from paying an additional $50 to lock it in again at the lower rate.

cliff · Posted: Sat May 31, 2008 9:37 am Post subject:

Sorry for the late response but, I could not get onto mortgagefit yesterday.

Wow Larry I cannot slip anything pass you... Of course it was a loaded question.

The answer is you are both right however “it depends.” If you are in tune with rates and watch them throughout the day and get “current” up to date changes then for “today” here would be my recommendations.

If you already have rates for the morning, and you saw a quarter improvements in price over yesterday, locking is not a bad idea. But we will likely end the day positively. Floating is recommended if you can afford the slight risk.

If you are speaking in general now would be a good time to get a mortgage because with “inflation expectations” rising that means ultimately rates are going to start to progressively move higher over the next couple of years.

What other type of information could be useful for you guys in this current environment? I’m open and willing to do the analysis just tell me what you would like to know.

gmakerley · Posted: Mon Jun 02, 2008 6:56 am Post subject:

for me, cliff...just tell me when rates will peak and then i can count on a slide - good for me, good for my borrowers.

cliff · Posted: Mon Jun 02, 2008 8:39 pm Post subject:

Will do. Now when you mean peak what is the time horizon you are speaking about intraday, one month, quarter or in general when rates will start to move upward over time?