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TO LOCK or NOT TO LOCK? THAT IS THE MORTGAGE QUESTION. 11/30/11

By
Real Estate Agent with Virtual Properties Realty 288804
TO LOCK or NOT TO LOCK? THAT IS THE QUESTION.
Rates are holding steady, and as this article from Mortgage News Daily states, the best execution rate is 4% or under. In other words, if you are being offered a rate of 4% or under, it is a good decision to lock as rates are trending now. At 4% or 3.875%, there is more of a chance the rate will go up than it will go down, and if it goes down, it will be 1/8 to 1/4 point at most, and there is much more room for it to rise. However, if rates are at 4.125% or higher, it is fairly good risk to float the rate since the benchmark has been around 4%.

 

ttp://www.mortgagenewsdaily.com/consumer_rates/237859.aspx


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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Yes rates are so low I would not chance the increase to a higher rate.

Nov 30, 2011 05:50 PM
Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

I would take the chance now. The changes would be minor and the risk is low.

Nov 30, 2011 06:34 PM