Close call on locking into my mortgage rate
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Since we have entered into a contract for our new house, the mortgage rates have been very volatile in the last ten days or so…I have been following the 30 day fixed mortgage rates on Zillow to see if they have a chance to drop back down to the 5% or lower range, as seen a month ago or so. Since I needed a 90 day lock period, I was willing to roll the dice for a few days last week but the trend was going the wrong way. With this in mind and the chance to re-lock for a lower rate with Wells Fargo, I decided to lock in on Thursday morning of June 4th at 5.25% for 90 days.
Looking back over the last few days, this appears to be the right decision because investors are losing confidence with the US bonds as the deficit continues to grow for a multiple of reasons. And, if by chance, the rates drop I will just re lock-in. If you are considering a similar float down option, you need to make sure you understand the terms, With Wells Fargo, I have up to 5 days before closing to initiate a re-lock and it has to be on the same terms (i.e 90 days). The other small thing is that you get the 90 day rate plus 0.125%, so I need my rate to drop to 5% or lower to take advantage of this option.
So we will see what the future holds for mortgage rates but I am very happy with our current setup.
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4 Comments on this post
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CD Rates Phi said:
It’s crazy that rates are starting to stabilize at this point, as if the economy were actually recovering.
June 9th, 2009 at 2:57 pm -
Rose carp fishing said:
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this is a nice post with a good article.thanks for nice posting .it blog is good and best them.July 16th, 2009 at 5:42 am -
Sensual photography said:
My credit score is between 660 and 687. I need to refinace my current rate 7.35 adjustable mortgage. What kind of rate will I get.
Countrywide my current lender says I only qualify for a 8.75 rate because I had a bankraupcy in 1997 and I had two collections in 2003 due to my husbands illness and inability to work. He has since started to get Social Security and Retirement benefits.
I pay all my bills on time and pay more then the minimum on all of them including on my mortgage.
I can’t see why items from 3 yrs ago should still affect my credit since I have been making sure I pay everything beforeit is due and do not use more them 1/3 of my credit available.August 1st, 2009 at 8:36 am
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