Do I lock today???

Here is my deal. My loan officer recommends we do a 60 day lock today since the rates are treading up. I am purchasing a FSBO co-op and the seller is on the co-op board. Her lawyer is working on the contracts and my lawyer has contacted him. We have no contracts yet but it has only been 1 day so far. As far as the co-op board as long as we have all the paperwork in on the 15th of April we can have a meeting in May then close a week after.

Re: Do I lock today???

Hmmm... That's REALLY pushing it to be honest. Even if she's on the board, if the board has a set meeting date of 1x/month and you miss that one time because the paperwork's not ready yet, you will have to wait until the following month. Ask how much it costs to extend the lock and what the trend of increase is. We found that it was cheaper to unlock and relock (we paid about $250 to do this) than to continually extend it. It took us almost three full months from bid acceptance to closing.


ETA: we locked in dec 15, our lock ended feb. 23. we were going to keep extending it but our mortgage broker, who said that rates were going up in dec, recommended letting the lock go and relocking the next day. It actually worked in our favor - we went from 6.125% to 5.875%! Anyway, the point is as much as there might be a 'trend' or a 'gut instinct', they're not infallable either.

Message edited 3/30/2006 1:56:32 PM.

Re: Do I lock today???

Wow you got a great rate. They are much higher now!

Re: Do I lock today???

Re: Do I lock today???

Difficult to say if they are going to go higher or not. My gut says they won't creep up too much higher and they may dip a bit to get a good lock in.... but stranger things have happened.

I am glad I am not in this position.

Re: Do I lock today???

Posted by DjPiLL

Difficult to say if they are going to go higher or not. My gut says they won't creep up too much higher and they may dip a bit to get a good lock in.... but stranger things have happened.

I am glad I am not in this position.