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George.
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0.10 Dollars($)
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 Posted: Sun Apr 20, 2008 5:10 pm Post subject: Mortgage Interest Rate Lock - what if the rates go down? |
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Hello! 
I had a quick question and would appreciate it if you could answer it!
What if I lock into interest rates with a lender before getting a home and during that time interest rates go down?
Say I got pre-qualified and locked rates for 60 days and went shopping. During that time they fell! Can I get lower ones?
Would greatly appreciate your answer!
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 sara
Joined: 05 Jul 2006
Posts: 1015
Location: New Brunswick, New Jersey
193.60 Dollars($)
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| Posted: Mon Apr 21, 2008 10:04 am Post subject: RE: |
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Hi George,
Welcome to the forums.
You can get lower rates even after the rate lock provided you have the float down option. But are you confident that you'll be able to find a house within these 60 days? |
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Mac_7
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| Posted: Tue Apr 22, 2008 4:07 am Post subject: |
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| A float down option is good but see that you get it it for free and are not charged with hefty fees. |
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kpatrick
Joined: 29 Oct 2007
Posts: 105
Location: Atlanta, Georgia
31.81 Dollars($)
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| Posted: Tue Apr 22, 2008 5:33 am Post subject: |
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Most companies have a "free" float down option with a 90 day lock. The trick is that the price of the 90 day lock is going to cost more. In today's market, nothing is a sure thing, but on the same note, the potential of rates increasing dramatically are very slim. On top of it being in an election year, the economy is just not at the point that rates are going to increase dramatically.
As always, the best rates are found in the 15-30 day window, and if I were buying right now, I would focus more on the deal...if you are going after a forclosure or short sale property, you need to be careful with locks. Because although the banks want to sell these properties, my experience over the past few months is that they are EXCRUCIATINGLY slow, and it is like pulling teeth to get them to close on time. They are just overwhelmed with the volume and cannot keep up.
Get with a good mortgage broker and they will help you navigate the current market.
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 866
Location: bloomfield, ct
60.96 Dollars($)
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| Posted: Tue Apr 22, 2008 10:52 am Post subject: |
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i concur with kpatrick about the timing of closings. getting a loan to closing is precisely what she said - excrutiating.
as for locking in before you find a property, it's my experience that you must have a real property prior to locking in. perhaps there are lenders willing to go out on that limb - i don't know.
if you are of a mind that rates will decline, then simply forgo locking in. as noted above, you will likely pay a price for a float-down of the rate.
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George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-221-5044 |
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