Float or Lock?

Asked by Steve, Essex, MA Fri Dec 5, 2008

My lender is offering 5.5% (no points) and the close date is December 18th. I'm speculating that the 4.5% rate program that everyone is talking about will not be a possibility until 2009 but I'm torn between floating or locking. What say you all?

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Rosemary Dis…, Agent, Beverly, MA
Wed Apr 8, 2009
Hi, If you locked at 5.5% see if you can now re-finance for 4.75%. It might be too soon but I would call your loan officer and see what they can do for you. See if the saving is worth it in the long run.
0 votes
Belinda Arro…, , 02038
Fri Dec 5, 2008
You will be closing very soon. Lock on this rate. It is a good rate!.
Web Reference:  http://www.BelindaArroyo.com
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Cameron Piper, Agent, Forest Lake, MN
Fri Dec 5, 2008

Congrats, you made the right decision. Do yourself a huge favor and stop watching rates between now and closing. You have made the decision so don't torture yourself if rates drop even further. It is a gamble to both lock and float, and I think you made the right call given your situation.

Cameron Piper
Web Reference:  http://www.campiper.com
0 votes
Steve, Home Buyer, Essex, MA
Fri Dec 5, 2008
Update: I just locked in at 5.375 with no points. I feel pretty good about it given my time frame.
0 votes
Luke Allison, , Asheville, NC
Fri Dec 5, 2008
That looks like a pretty good rate based on current rates. Assuming he won't switch the rate on you when you go to lock (i.e. "I'm sorry but rates are just slightly higher and it will now cost .25 points") then you should go ahead and lock. You closing is too close to start gambling with a payment each month.

However.... IF you are somewhat of a gambling person and your mortgage person is giving you whatever the current market rate going is at any time, then you can ride it out for 2 weeks and see where rates go and lock it when you feel comfortable. That call is yours to make.

Just know that 5.5% is very fair right now.

Luke Allison
Flagstar Bank
0 votes
Judy Boyle, Agent, Marlborough, MA
Fri Dec 5, 2008
I agree with Lori! 5.5% with 0 points is an unbelievable rate! Think of the TV Game Show "Deal or No Deal"...some of the contestants gamble and walk away with nothing. You're already a winner so don't take the risk! Good luck!
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Lori Lewis, Mortgage Broker Or Lender, Bethlehem, PA
Fri Dec 5, 2008
I would personally take the 5.5% and run! You are closing in 11 days. If you were closing in Jan or Feb I would think about waiting, but 5.5% with ZERO point is a great rate!!
Web Reference:  http://www.myallied.net
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