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When is the best time to lock ?

When the rates are going down or up? Is it similar to wall street that you buy on the way down and sell on the way up? by greghinman from Dallas, Texas. Feb 3rd 2011 Reply


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

Mortgage interest rates are directly related to mortgage backed security prices. When security prices go up, rates typically will go down & vice versa. I subscribe to a program that tracks the security prices by the second & they move prior to interest rate adjustments so I could provide a little insight on where the rates are headed at any given time of any day. Call or email me to discuss if you wish. Todd Tholl 563-324-4858 toddt@mainstreetfin.com

Feb 3rd 2011
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Joe Shamie (Joe Shamie)
#5 ranked lender in New Jersey - 1,412 contributions

That is a very difficult question to answer. I typically tell borrower's to lock if they would be upset if they woke up tomorrow morning and rates were .125% higher. If they tell me they wouldnt, then I recommend floating. Its all according to your level of risk tolerance.

Feb 3rd 2011
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Patrick McCarthy (PatrickM)
#23 ranked lender in Ohio - 196 contributions

Your risk tolerance is definitely the driving force as to whether youshould lock now or not. Since Monday, rates have risen approx .125% (1/8%). The stock and bond market are looking favorable at this time, which ususally means rates will not decrease. If anything, they will increase. I have access to being able to lock your loan and if the rates go down before you close, you can take advantage of the lower rate.Hope this helps.Patrick McCarthyNorthpointe Mortgage866-901-3576

Feb 3rd 2011
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Dan Paladin (dpaladin)
#1 ranked lender in California - 608 contributions

This is a great question...there is no magical crystal ball...first thing I look at is when are you suppose to close...this will dictate if there is an urgency to lock right away or if we can "float"...maybe ride out an upswing and wait for it to come back down if market is just moving with normal fluctuations..I use various sources to try and determine which direction the market may go to try and minimize the risk...key word...minimize...so when all factors are considered..when you are offered a rate and terms of that rate including lock duration that fit your needs...that may well be the time to lock and not risk losing ground...vs. chasing a slightly lower rate....hope this helps..feel free to contact me to discuss this further..

Feb 3rd 2011
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Crystal Sheppard (csheppard@envoymortgage.com)
#19 ranked lender in North Carolina - 4 contributions

Mortgage interest rates have fluctuated up and down during the past 40 years. More during this time than ever which is a result of reactions to forecasts, changes in the economy, the bond market, employment and consumer spending. Interest rates react in a negative manner (slightly increasing) with every release of market statistics in which the report is negative. Interest rates will decrease slightly when market news is positive. This happens daily and sometimes several times during the day. I will be happy to help you with any of your financing needs just email me with more details at csheppard@envoymortgage.com

Feb 4th 2011
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