Home Buying in 95356>Question Details

Me, Home Buyer in San Francisco, CA

when is it best to lock in your interest rate?

Asked by Me, San Francisco, CA Wed Nov 20, 2013

it seems like right now the USDA rates went up. we have an offer accepted on a home and we are using USDA to fund the loan. we are wondering when it would be the best time (or how it even works) to lock in the interest rate. we will go into contract and have 17 days to do everything that is needed (appraisal & inspection)

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Interest rates have been low and with 17 days to close, I would suggest to lock in your rate right away. A good lender would give you proper direction according to the terms of your contract. Because it does cost to lock it in they want to assure that the transaction will close within the necessary times period. Hope this helps and that you have a successful closing! USDA loans are great and I wish more homebuyers would utilize them.

D’Adrea Davie
0 votes Thank Flag Link Wed Dec 4, 2013
Your lender may be the best to talk to about this, although if the rates are changing daily, its risky...and frustrating if you lock and the rates drop. In this 'current' market, We are not seeing rates jump enough to make buyers rush to lock in a rate, but once again, your lender will be the best source to educate you on the daily changes they are seeing. I work with the best lenders in the Modesto area, because its important to get my buyers the best information.
0 votes Thank Flag Link Thu Nov 21, 2013
I always try to lock in the rate as soon as possible.

Understand this costs money and it makes it a pain the rear because the longer the lock the higher the cost. So of course lenders will be calling claiming to have cheaper money quoting off of a 5 day lock/
0 votes Thank Flag Link Thu Nov 21, 2013
Good morning,

It would be best to ask your Loan Officer for the proper advice... He or she should be able to provide some direction, however the ultimate choice to lock is yours... Have a Thriving Thursday! Your Friend & Realtor, Henry Brooks 209-814-0119
0 votes Thank Flag Link Thu Nov 21, 2013
Hi Me,

First, here's a primer on how Mortgage rates are determined (read this first):

Timing a rate lock is always a difficult decision to time even when we are in a normal market - right now, we're in a hyper-phobic market revolving around whether the US economy is getting back its legs, or not.

Given your "In contract" status I would lock ASAP (unless your loan Broker/Banker is trying do a 15-day lock ... just feel fortunate - you are buying when rates are still at historic lows!

Just make sure you close escrow before the end of the year because there are some potentially significant changes that could affect Buyers, and subsequently, Sellers.

"The Top 4 Challenges Buyers & Sellers will face in 2014!"

0 votes Thank Flag Link Wed Nov 20, 2013
See the blog link in my post....
Flag Thu Nov 21, 2013
could you share what are the changes that could affect buyers/sellers?
Flag Wed Nov 20, 2013
It is never a good idea to try and predict the bond market. Lock when you can lock!

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Wed Nov 20, 2013
There are no "experts" when it comes to predicting interest rate behavior. As a rule of thumb, I would say that if the interest rate is one you can afford right now, go ahead and lock it. However, if I were your agent I would be very concerned about that 17 day time frame. On a USDA transaction if the inspection and/or appraisal cite any improvements or repairs that need to be done, your time frame will be out the window.
0 votes Thank Flag Link Wed Nov 20, 2013
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