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Mortgage Question... Lock-in now or wait...

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Joanna
LIF Infant

Member since 3/07

99 total posts

Name:
Joanna

Mortgage Question... Lock-in now or wait...

Here's the issue... we really wanted to close as late in June as possible. We negotiated to get June 15th, although we would have liked later. Our broker just called and said he wants to lock us into a rate today, which would mean closing within 60 days (June 4th). He was saying that unemployment came in very low and the economy is looking good. We would be locking-in at 6.25 (which is annoyingly higher then when he was first talking to us when the rate was 6%).

Should we lock-in or risk waiting?

If the bank offered the broker 6% and he gave us a rate of 6.25, does he collect that point money? Just curious and not well informed of broker practices.

Posted 4/6/07 2:29 PM
 
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bikramaddict
mommy-to-be

Member since 8/06

4376 total posts

Name:

Re: Mortgage Question... Lock-in now or wait...

i think i'd lock. i waited and ended up paying a little more. it's all a game.

Posted 4/6/07 3:45 PM
 

Blu-ize
Plan B is Now Plan A

Member since 7/05

32475 total posts

Name:
Susan

Re: Mortgage Question... Lock-in now or wait...

have you shopped it? Yes, the broker would make money based on your rate but that's not always the case. I would go to a few banks and shop it.

I think that is the going rate right now. You can also lock with a contingency that if the rate falls you can have it adjusted. You may have to pay a fee for that but if my memory serves me correctly, the fee is nominal compared to the amt of money you would save with a lower rate.

Posted 4/6/07 3:51 PM
 

Joanna
LIF Infant

Member since 3/07

99 total posts

Name:
Joanna

Re: Mortgage Question... Lock-in now or wait...

Posted by Blu-ize

have you shopped it? Yes, the broker would make money based on your rate but that's not always the case. I would go to a few banks and shop it.

I think that is the going rate right now. You can also lock with a contingency that if the rate falls you can have it adjusted. You may have to pay a fee for that but if my memory serves me correctly, the fee is nominal compared to the amt of money you would save with a lower rate.



We did shop around and in the end we found this broker who was willing to compete and lower his closing costs. We met with him yesterday, signed our lives away and wrote a check for part of his fees. Yesterday we were quoted 6.125. He called today and stated what I wrote in my posting. It all feels like a game and I hate feeling like I may be taken advantage of... urgh! I really didn't want to close so early in June - we have two weddings in early June, so we won't even be able to take advantage of painting or anything. We would also be paying rent and the mortgage taxes for the month. Urgh again!!

Posted 4/6/07 3:59 PM
 

Diana1215
Living on a prayer!!!

Member since 10/05

29450 total posts

Name:
Diana

Re: Mortgage Question... Lock-in now or wait...

I would lock in. When we were buying our house I wanted to push back the closing as much as I could - and we ended up getting a higher rate because of that.

Posted 4/6/07 4:10 PM
 

~Colleen~
my loves...

Member since 5/05

9129 total posts

Name:
guess

Re: Mortgage Question... Lock-in now or wait...

It's such a game - we gambled for about 2 weeks before locking in and wound up locking in at a 1/4 point higher than what it was two weeks prior.

If you want to wait and are willing to "gamble", then I would wait. Weigh your options - in the end, a 1/4 point more isn't all that much if closing later in the month will give you a peace of mind.

Posted 4/6/07 4:53 PM
 
 

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