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Considering current market rates, is now the best time to lock or are rates likely to get better than this?

I wanted some professional advice from other lenders before i decide by Brent_and_HannahB... from Phoenix, Arizona. Sep 27th 2013 Reply


Stephen Makia (stephen.makia@westinmortgage.com)
#916 ranked lender in California - 30 contributions

Hey Brett, I personally would wait until the debt ceiling issue in Washington is resolved. My reason would be that, there's still a small portion of rates that needed to be taken off the current rates. That is because, the noises of the unknown decision from government possible shut down is still in today's rate. Thus, if the government is not shutting down, this small part of the rate would have to be dropped off. another Reason is that, we are moving towards a slow period, when things slow down, the forces of supply and demand comes into play. Thus, my advice would be to give a week or so before locking it. If you have any questions, don't hesitate to reach at 909-641-9980.Thanks, Brett

Sep 27th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,861 contributions

Rates go up and down on a daily basis, but it's usully slight improvements or declines on a daily basis.. if you have a loan in place now, but just not locked, then there is likely not any real big swing one way or another that would be extremely beneficial to you.. that being said, if your happy with your quote, you just need to lock in now.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 27th 2013
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Mike Wald (Mike_Wald)
#136 ranked lender in Arizona - 6 contributions

Well, that's the 464,000 question isn't?A couple of things. Not sure what loan amount you are considering, but if you are comfortable with the payments, then I'd lock. It's very rare that you start the loan process and float, and you end up with a better rate from when you started.Also, over the last few days, rates have been trending downward. We are close to low 4% range, rather then the mid fours. Are we going to see rates back down in record territory again, I don't think so, unless there is some catastrophic event.If the payment feels good, lock it. Depending on your loan size, the difference in the payment is usually minimal. Give yourself some peace of mind, lock, and move on.Thanks, and take care. Questions, I'm here !

Sep 27th 2013
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Anthea Emerson (AntheaC2)
#216 ranked lender in Florida - 55 contributions

Hi Brent,It's difficult to know exactly when to lock and it can almost be compared to knowing the best time to buy stocks! Before you lock your loan, considering the following issues first:1. Do you already have a home under contract?2. Will you be closing within 60 days?3. What kind of loan program will you be under?Keep in mind that the longest lock period is 60 days and the rate will be higher than getting a 15, 30 or 45 day lock. As a Lender, I always lock my home buyers once we have a contract and the appraisal is completed. On the other hand, rates have been relatively stable in the last few weeks as well and we haven't seen a huge rate hike since June.Talk to your lender and figure out where you are in the loan process before considering a loan lock.

Sep 27th 2013
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I can personally tell you that everything I learned in graduate school while obtaining my MBA degree does not apply in today's environment. Even when the feds say they will not be raising rates the lenders turn around and do the opposite to offset their billions of dollars of looses through the years. Locking an interest rate is a lot like gambling. You should watch the Bloomberg channel for a while so that you can make a comfortable decision. If you aren't much of a risk taker than you should lock in while rates are down. Good luck to you.Jill BeilerOperations ManagerArizona Wholesale Mortgage Inc.602-358-8717NMLS Id: 168270Co NMLS Id: 19254

Sep 27th 2013
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Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

Don't expect rates to go much lower.

Sep 27th 2013
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Yes, now is the best time to lock because we have a float-down policy that protects you from rates going up but allows a renegotiation if rates go down during the approval process.

Sep 27th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Trying to predict what rates will do is exactly like trying to predict what the stock market is going to do in the next week or two - if anyone can do that consistently they shouldn't be wasting time handling mortgages. Sometimes from one day to the next it is possible to make an educated guess about where they are likely to go but otherwise not. It depends a lot on the details of your particular situation: when you are closing, type of loan, how stressed you'll be if you wait and rates go up instead of down, etc. I work for a national lender (most of my business is local but I do handle loans in other states as well) and we have a 1 time float down program so that if there is an improvement in rates you can take advantage of the opportunity. Click my name for contact info. Otherwise, if you're closing in the next 30 days I recommend locking and move on. It's like trying to get the best price on a stock or a Christmas present, you never know the lowest until it is too late to take advantage of it.

Sep 27th 2013
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