Should I Lock, Or Should I Gamble And Float The Interest Rate?

To Lock Or Not To Lock That Is The Question?  Tis it better to gamble, or tis it better not to gamble only ye can decide.  Perfect topic to give it a little Shakespearean twist to, even if my Shakespeare is not all that good.  Lately the mortgage interest rates have been fairly stable, and recent predictions is that will continue. However, as we saw in June of 2013 interest rated can change in a blink of an eye without any warning.  So whether the interest rates are stable, going down, or climbing up, the question always seems to be the same by Borrowers, "Should I Lock, Or Should I Gamble And Float The Interest Rate?"

This question is a valid one, and with the uncertainty of what interest rates will do or not do, the question of whether to lock the Interest Rate or not will continue.  However, this is a decision no one other than the Borrower can make.  All a Loan Originator can do is provide the Borrower with as much information as possible on what the Rates have been doing, and let the Borrower make the decision for themselves.  Even then the right decision is will not be the same for everyone.

A Borrower could be in a position to not have to act quickly.  A fluctuation in the Interest Rate may not mean much to them one way or the other.  But there will also be those that the slightest upward fluctuation in the Interest Rate could be the difference between qualifying for a loan on the property they want to purchase or not.

My responsibility as a Loan Originator begins and ends with giving my Borrowers as much information for them to make a well informed decision.  I provide my Borrowers with different scenarios on what their monthly payment will be based on the interest rate going up or down, and how this will impact their ability to qualify for a mortgage.  Interest rates may also have points associated with them, and this to will have an impact on the Borrowers ability to qualify.

 The more uncertainty of what Interest Rates will do, the more difficult this decision is to make.  This means Borrowers will need to acquire more and more information to make the right decision for their particular situation.  Which means Borrowers will need to work closely with a knowledgeable Loan Originator who is qualified to provide them with the information they require, and who is looking out for their best interest.

"Should I Lock, Or Should I Gamble And Float The Interest Rate?"  The only one who can answer the question is the one who is going to have to live with the consequences of the decision.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com