should I lock the rate now? Your input is greatly appreciated!

M

Minionbibi

New member
Escrow will be closing on 4/10/15. I was quoted by WF that the rate for 30yrs is3.75% for 30yrs, if i lock in for 90day, the cost will be $700.

but if i lock in for 60days with 3.75% , i will get a credit for $300.

which option is better?


Greatly appreciate for any of your inputs!
 
90 days won't get you to 4/15. You'd need a 120 day lock, and even then with the upcoming rainy season I'd recommend a longer lock in case the builder runs into a construction delay. Wells has their "Builder Best" which is a long term rate lock option. Ask about that, see how a 30 fixed lock might look under that program and decide from there.

I've long been under the impression that the US recovery is really no more than a manufactured sugar high, derived from cheap debt, disregard for stock fundamentals, and tech obsessed consumerism. We're overdue for a diabetic like shock to the system, because as we all know actions still do have consequences. If we do see a 2000-3000 incremental DJIA drop my guess (and that's all this is....) is that we'll still see 3.x rates for some time. Talk about lower or higher rates is just that - talk - so if you sleep better at night knowing a 3.75% rate is locked in with an option to float down if terms improve, it's $700 well spent. If you can stomach a few up and down days, wait. 

My .02c

Soylent Green Is People
 
I wouldn't lock just yet (especially if that means you have to pay to lock)....markets seem to be getting heartburn about oil going down and the Eurozone dealing with deflation. 
 
I was just in your situation not too long ago and timing interest rates are like timing the market, usually a blind shot - we decided to only do a 30 day lock and really the interest rate difference in the end was hardly any difference. Chances are interest rates aren't likely to spike up in the next 3-4 months. So maybe consider a lock closer to your COE date (at least then you have a better idea of any builder delays or know if they're most likely on schedule)
Good Luck!
 
For the financing experts, why do you get less days each time you re-lock even though it seems like you have to pay the same amount each time to re-lock?  Or does this depend on the loan?  I don't remember the details but it seemed like each time I re-locked the number of days that they would lock for went down to much less than the original.  Something like 45 days to 21 days to 7 days.
 
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