Question by Jamie Z: Should we lock a mortgage rate today? We close in 27 days - we can lock a rate of 5.375 today which is down 3/8ths from last week. Should we lock in today or wait a week?? Best answer for Should we lock a mortgage rate today?:
Answer by blue01cobra
I think rates will still be going down over the next couple months, but in a week... I mean, you might save like 0.1 percent or something, if any.
Answer by Rickey
No; it's probably a good idea to lock. The market is favorable for you today. Follow this advice. New rates are issued at about 11am est. Wait until Wed. after 11am est and THEN LOCK. That rate is great..don't get greedy.
Answer by trblmkr30
I would lock tomorrow. Just heard that rates hit 5.25% on a 30 year fixed. let's see if this sticks.
Answer by Emcee H
Yes, don't risk it and guarantee your rate. if rates drop again ask your loan officer to renegotiate your rate.
Answer by tampabaycreditdoctor
If it's me, I'm not locking. Think the news from Citi was bad today, the worst is coming. Those 4th quarter stats from the lending world are on the way and it'll be none too pretty when it arrives. The Fed will mov e to stop the bleeding, but it'll be too little too late. Back in the lazy, hazy, crazy days of speculative madness, not only were subprime loans being made to people that shouldn't have been in them, but the supposedly astute investor could just rock with this new tool, known as "interest only." We all know though that the "music has stopped" in the musical chairs game and not everyone got a seat. I would be wary and watch the pricing in the days ahead, it is not unusual to get 2 to 4 "price blasts" in a single day in a turbulent market, and that's where we are. Should you see the market make a sharp move upward suddenly, say 200-300 rise in one day, it's time to lock. I don't think it'll happen though, as the market is off to it's worst start since 1991, and that was a recession year. You'll do fine, heck you were aware of pricing last week and that's a good thing.
Texas Mortgage Info: How your mortgage person structures your loan is more important than the getting a low rate. www.mylendingplace.com
mortgagerefinance-101.blogspot.com Today's Mortgage Rates: Which home loan is best?
Want to learn about Interest Rates?
Before searching for the lowest mortgage rates today, let’s learn the history of interest rates in America. According to Wikipedia the Federal Reserve Federal Funds Rate in the United States has varied between 0.25-19 percent from 1954 to 2010.
Interest Rates did go as high as 19% in America at a time, but don’t be surprised because In Germany the interest rates were as high as 90% in 1920.
It’s a shock for many of us Americans, these days even 6% sounds really high. In the late 1970’s and early 1980’s America experienced the highest Interest Rates and today we are already at the lowest we have ever seen, but, according to economists, we have not hit bottom yet.
Why Interest Rates are changing all the time?
Many economists think lower interest rates will give a gain in economic activity, short term of course, and then will offset by inflation. This is one of many reasons the U.S is experiencing historically low Mortgage Interest Rates. The economy is not the best we have seen and many U.S officials, economists and other politicians in congress are trying to make a change. Experts say that the change in the interest rates early this year, 2010, already rose the spending in America and the economy is already getting better as a result. I don’t believe so, because even when interest rates are at their lowest homeowners still cannot refinance their homes and/or purchase new homes because Fennie Mac and Freddie Mae have tightened their guidelines.
How do we really know if we did get the lowest mortgage rates today?
There are different options for you to seek for low mortgage rates today. What you really have to understand is the way mortgage lenders work and monetize their business and please remember that mortgage lenders are in this business to make money. Why every mortgage lender offers you a different mortgage rate today if there is only one mortgage rate in America?
Mortgage lender uses the index which is the actual Interest Rate and they add their Margin. The margin is the mortgage lender’s real profit. You should know that you can always negotiate the “Margin†with any mortgage lender because they want your business. This is a good way to get the lowest mortgage rates today.
Now that you understand why the interest rates are changing all the time and you know how high and low they can get, you can go ahead and search for a good interest rate that will lower your mortgage payments. Don’t ever take the first offer just because the mortgage Interest rate you’ve been given sounds good. You could find a lower offer from another mortgage lender. Compare mortgage rates today and get the lowest you can possibly can.
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