A Comment On Interest Rates
Did the interest rate you wanted go bye bye?
Those of you have followed me on RealEstateUndressed.com know that I am an advocate of locking your loan at the time of application. This especially applies on purchases. I have experienced too many instances of a surge in rates to believe in gambling by floating your rate. Todays circumstances may be different. May be is still a gambling type of approach. For those that wanted to float, about a year ago I introduced the “down down up lock game” to the blog world. This may be a good time to play it.
The rules of the down down up lock game are simple. Don’t lock today or any day until the rates go up. Lock the first day rates go up. I think today might be a day to play. So lets keep score. I pick the par rate from one of our leading banks. Par means there is no rebate and you pay all of the fees. Today par is 6%. For the sake of keeping score I am going to assume the mortgage amount is $400,000.00. In reality I am sure your mortgage is lower.
