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People have suggested I lock before rates gets worse, but i'd like some professional advice. Should I lock now?

by Queenbetty3399 from Boulder, Colorado. Sep 10th 2013 Reply


Joe Metzler (JoeMetzler)
#18 ranked lender in Minnesota - 3,727 contributions

I can not scream it loud enough... LOCK NOW. Saving you all the boring details of the financial markets and why rates are what they are, look at it simply like this. There is very little room for downward interest rate gains, and huge room for upward rate movement... If you lock now, and somehow everything lines up again where rates go back down, you can always refinance. www.MetzlerMortgage.com

Sep 11th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

I would tend to agree. In this market it's best to lock as they could go up. Even if they go down it won't be by much and/or for very long most likely.

Sep 10th 2013
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Brian Neuwirth (Bneuwirth)
#49 ranked lender in Colorado - 28 contributions

Locking a loan is a judgment call. To give you advice would be the same as walking up to a slot machine and telling you to put money in because I know you are going to win. Many mortgage professionals watch the market daily to try to get a idea of what the market is going to do. There is a magnitude of economic data which is due to release this week which can affect interest rates. The brunt of this data is not due to release until Friday 13 September with a mix bag of results. So in short all we can do is speculate. With that being said if you were to poll many secondary professionals within the bond market, we/I would recommend the following. If you can get a rate today that you can live with and you are planning on closing within the next 45 days, I would look at locking the loan. If you are planning on closing within the next 60 days, I would watch the market and react if the market starts shifting in a negative fashion. If you would like additional information feel free to contact me. Good luck with your decision and I wish you success.

Sep 10th 2013
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Jason Vondrak (jvondrak)
#210 ranked lender in California - 1,741 contributions

In today's market it is best to lock. Rates are expected to continue rising. Ask your lender about a float down rate lock option and how much that costs, that will allow you to float down to a lower rate once while your loan is processing if interest rates happen to improve from your locked rate. Of course you will want to weigh the cost of that option and determine if it would be worth it.

Sep 10th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Do it now.

Sep 10th 2013
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

its no gaurentee that rates will continue to rise although it sure looks that way. if it were my personal decision, i would lock.

Sep 10th 2013
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Anthea Emerson (AntheaC2)
#216 ranked lender in Florida - 57 contributions

As TLCLender suggested, it depends on some factors. If you know the approximate date you will be closing on, then lock your loan. As a mortgage professional, I always suggest locking a loan after receiving an initial loan approval or at least after an appraisal. The 10-day lock is always the lower rate and you won't risk running into having to extend your lock in the event of your loan process taking longer.

Sep 10th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

TLCLender has given you good information. You should look at what your upside (rate improvement) vs your downside (rate deterioration) would be in terms of the actual costs/benefits he option will provide you. If you are risk averse, you should lock. If you are comfortable withthe risk and the monthly savings is significant to warrant taking the risk, you should float. At the end of the day, YOU need to make that call.

Sep 10th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

I think Brian with Total Lending Concepts pretty much hit the nail on the head. I suggest you contact him and have that discussion since he is in Colorado.

Sep 10th 2013
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Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 239 contributions

Lock

Sep 10th 2013
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Kay Cleland (kay@kcmortgagecolorado.com)
#31 ranked lender in Colorado - 221 contributions

Unfortunately nobody can make that call for you whether to lock or float. If you are happy with the rate and the payment you should lock and not risk what you currently have. Looks like the market it getting worse. You should talk to the licensed mortgage professional that took your loan application to discuss your options

Sep 10th 2013
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