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Senior Loan Officer
STERLING NATIONAL BANK
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Woodbury, NY 11797
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However, since you were great at answering my first questions, I have some more for you. Is there any reason as to why his mortgage broker didnt lock in the lower rate? If he locks in the 3.99% rate and a smaller rate floats along closer to the closing date, will he be able to grab the lower rate or will he have to stick to 3.99%?
The market had been relatively flat with slight ups and downs over the last few months with little impact on rates; unfortunately, the last 2 weeks have increased volatility and rates have started to climb. This week is especially volatile with daily market movers and the unemployment numbers being released on Friday.
If you can lock @ 3.99% and be assured that the closing date is set and that the lock will be guaranteed through the closing date( a few days extra would be recommended for unforeseen delays), I recommend locking the rate now.
You did not mention if this is an FHA or Conventional loan, Credit score, and if there are points being charged to obtain that rate. I assume that this is 0 points. There is a slight difference in rate between Conventional or FHA but 3.99% is a decent rate as of today for either loan.
No one has a crystal ball and the market can improve slightly before you close at the end of June but I do not expect rates to return to the recent lows we saw.
I wish you smooth sailing and best of luck on the home purchase and closing!