If you're looking to lock in your rate, you will need a complete submission to be able to lock it and/or float it. Rates stabilized over the weekend, but if you want to get into a low rate you might want to move quickly to take advantage of rates right now.

Let me know if you need any help finding financing, we deal with purchase loans all the time. I'd love to work with you and earn your business!

Kellen Gracey
Mortgage Specialist
BayBurg Financial
Office: (954)764-7064 (ext 211)
Toll Free: (866)230-9050 (ext 211)
Cell: (386)237-7231

As stated, rates made a big move up yesterday. So if you haven't locked you may want to wait. A lot will depend on the economic news the next few months and how hard to Government works to force rates down as they have been doing. But if you are not within 60 days of closing, you generally don't want to lock.

It sounds like you should talk to both a lender and a tax man, since your situation appears unique.

Frank Hotchkiss
Sotheby's International Realty
805-403-0668

Jera, Here is what a survey of approx 250 lenders thought about rate trends on Monday May 25, 2009.
You might want to check it for a while as it is updated weekly... http://mortgage-x.com/general/rate_trend.asp

If you would like to track rates .... http://www.fhfa.gov/ .... http://www.fhfa.gov/webfiles/2407/MAY_MIRS_May_2009_final.pdf

http://mortgage-x.com/trends.htm ... http://mortgage-x.com/general/historical_rates.asp

Look at offered rates in different states.... http://mortgage-x.com/x/search.asp

Lenders .... http://ml-implode.com/ .... http://www2.fdic.gov/qbp/qbpSelect.asp?menuItem=QBP
http://www2.fdic.gov/qbp/index.asp ... http://www.fdic.gov/bank/individual/failed/banklist.html
............................................................ http://www2.fdic.gov/idasp/main_bankfind.asp

Good luck, Dunes

Uhhhh. I don't consider a .5-.75% rate increase in one day to be "modest." Base rates jumped from 5.00% yesterday to at least 5.5% so don't be fooled by teaser rates right now. One thing to consider is that any desired interest rate on your part is always available to you - it just depends on what you want to pay for it in discount. For example, the 5.00% rate that yesterday cost nothing today costs anywhere from 1-1.5% in discount points. These points can still be paid for via seller concessions in your contract but you need to make sure that your seller is willing to pay them. I would assume that if you discussed with the seller that if rates increase you may be denied for a loan because the payment would become unaffordable. Maybe he will reconsider paying more of your closing costs to keep your rate low.

You can lock whenever you want but it is hard to advise you to lock your loan on the upswing of rates - plus rate locks can only be given for 30-60 days and you want to make sure your closing will occur before the lock expiration date or the lock is worthless anyway. I guess you just need to figure out how to structure this purchase perfectly so that it still works to your financial advantage. Let me know if you have any questions.

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com

Why?

Rates going up will drive the home price to new lows.

Our in-house lender shared with us that after Memoria Day interest rates will increase. There was a modest increase in rates this week, but they are still remarkably low. You should see rates between 4.5 and 5% for a 30 year fixed for awhile. Make sure to check with your lender before locking in a rate. There may be fees for extending that lock.