Locking rates can be a tricky but exciting time for the borrowers and brokers. It takes real expertise to understanding the bond market when locking rates. Fixed mortgage rates are tied into the yield of the Ten year note. If the yield goes up-and the price of the note goes down-so too do interest rates. It's that simple. Reading the bond market and lock advisory sites gives the broker a true understanding of rate locks. Rates are still low, if someone is getting the first time home buyer credit of $8,000 locking in the low 5% range is still a good deal. For clients that are not getting the tax credit, I would float the rate for now. Please do not hesitate to contact me for any lock questions.
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop
I tell them to calculate their payment at the rate to lock and the rate they might get. That usually shows a small difference and they calm down a little.
Sep 10, 2009 05:18 AM
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