Did You Lock Your Interest Rate Friday?
Friday I posted that even though I believe it is risky to float your rate, I suggested things might be right to do so. I introduced this site to the down down up lock game, which is a concept I used to encourage people that wouldn’t lock at application to lock as soon as rates went up. So how was my advice? Understand, so called experts have taken entire mortgage banks down by leaving loans they were having to deliver to consumers unlocked. It is a risk.
Friday par was 6%: And today: 6% has a rebate of .305. In our hypothetical $400,000 loan the loan is $1220.00 cheaper for you.
So, should you lock? The game says you play another day, and we are playing the game. So we look again tomorrow. Don’t go golfing without your cell phone however, bad news can cause the market to have mid day price increases. Maybe you should lock. Oh, you want 5.875%. OK, rates didn’t go down enough to make that a par rate, you could dig up an additional amount of about $1000 and have that. I make a game out of it, but it is serious money when you are buying and have this issue to decide.
See you tomorrow. Larry Cragun
November 7th, 2007 at 10:43 am
Tuesday all of the gains were reversed. There was in fact a larger increase Tuesday over Monday than was gained Monday over Tuesday. The uncertainty of inflation caused the rise.