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Should I float? Should I lock? - Daily Update for Monday, December 15, 2008

By
Mortgage and Lending with Amerisave Mortgage Corporation

 

Here are the daily thoughts on floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation

The Empire Index released this morning showed manufacturing in NY to be lower than last month but not as bad as expected.  Don't necessarily take this as a good thing.  Global markets are appreciating the fact the Bush Administration is overriding what the elected officials have decided.  Markets are up on a possible bailout of the automakers by using the money intended for mortgage bailouts.

Technically speaking - the FNMA 5.0% 30 year bond closed higher on Friday - though still trapped in a very tight trading range.  With bonds heading back into the overbought range this will prove more difficult.

I am recommending to

  LOCK your mortgage rate (until bonds close above the 3 year mark).

 

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? & Reasons to Float or Lock

 


 

 

     Rates & Fees GuaranteedTo obtain rates and fees with a $500 guarantee - come visit

 

 

 

Mark Watterson
Salt Lake City, UT
Utah Real Estate

I always get asked about locking with the ability to float DOWN.  How do you feel about the float down option and is it available?

Dec 15, 2008 12:43 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Mark - I like the float down option.  In fact, our company has such feature.  We split the difference.  One locks in a rate of 5%.  Couple days before closing rates have come down to 4.5% - we split the difference and the customer now has a rate of 4.75%.

Dec 15, 2008 01:05 AM