you should always look at par rate, doing shopping around helps at times not necessarily always though! it's best to do a little mix n match on requirements and what could actually work! Feel free to contact me at 866-207-5340 ext 2534 if you want to work this out.

Fri Mar 21 2008, 14:36

shop around!
par rate on a 30yr fixed was around 5.25% a few days ago, and around 5.625% today.
This will depend on your credit (720+), and also your LTV (at least 80%)

With FHA you can get that rate with 2.25%, and hopefully a good credit file.

Fri Mar 21 2008, 07:10

Nobody can guess mortgage rate direction no matter how much they charge for their opinion. If you were lucky enough to stand pat until today you are a happy camper right?

Best advice I've read... if you have to lock a certain rate for your house to be affordable, then you should lock. If you can withstand an uptick in rates and still afford the house, then you should float since it costs money to lock (if you have an honest mortgage broker he will charge less for a 7 day lock than for a 30 day lock, and since the rates are 50/50 to go up or down on any given day - the price difference is your "house edge" in the mortgage roulette game.

Me.... I wish I would lock today if I could. I can get a giant rebate on a 6% loan and have no loan related closing cost - the rates are great today (March 19). In a week maybe they will be 3/8 - 1/2 higher again... who the heck knows? nobody.

If you locked a week ago instead of today, you paid about a point and a half extra for your loan. That's why they call it gambling!

Good luck.

Wed Mar 19 2008, 20:47

Chamqueen - ask your lender if you can "LOCK and FLOAT DOWN." Many loan programs permit you to lock the rate for 30 days and float down once if rates fall by a certain amount - but you have to ask.

Wed Mar 19 2008, 20:37

Charmqueen, you can gamble if you want. However, I had a client once wait until the last possible day to lock in against the advice of her loan officer. She ended up getting a higher rate, but that was her choice. It is a bummer you did not lock in at 6% the other day. However, on the other end you are gambling and it could go up again. The rates are still quite low anyway you cut it. Check with your loan officer, but I don't think you will see a huge difference in your monthly mortgage payment at this higher rate.

My personal opinion is to lock in and focus on closing out your purchase. Then again...it is your choice.

I hope this information helps! Best Wishes!

Wed Mar 19 2008, 19:50

Hi Charmqueen,
I wish I had a crystal ball with the answer to your question. Rates have been creeping up lately but there are pundants who claim that rates should fall. Here's what Bankrate.com posted, "This week, a majority of the panelists believe mortgage rates will fall over the next 35 to 45 days. Nearly one-third believe rates will remain unchanged (plus or minus 2 basis points)."

With all the craziness on Wall Street who really knows where rates are headed? What I can tell you is that rates remain historically low. I remember double digit rates. If monthly payments are managable for you at whatever rate, then you might go ahead and lock. At the very least it will give you peace of mind.
Best of luck,
Michael
mjadams@century21.com
http://mjAdamsSellsHomes.com

Wed Mar 19 2008, 19:42