My New Blog

Often clients wonder, what my interest rate is going to be. They are usually wondering this long before they can actually get a rate. Why do I say this? The term locking in a rate, means that funds have been secured at a specific rate for a specific amount of time. For instance we may lock you in at 5.875 for 45 days. This means as long as you close on your loan in that 45 day time period, you are guaranteed to receive a 5.875% rate.

However the rate can only be locked in if there is a specific property. Most people are shopping rates and have not even found a home. While it is always good to shop your lender and get an estimate of cost, don't be fooled by someone who offers a below market rate. I cannot tell you how many times I have had people come back to me who originally went elsewhere because they were offered a better interest rate. Only later to find when they actually contracted on a home the other company was considerably higher.

Now I am not saying everyone does this. But just understand that no one can promise you a rate until you have a contract.

Mortgage rates usually change daily around 11:00am. However for the last three months I don’t think we have had a single day without at least one mid day re-pricing. With this kind of volatility how can someone guarantee you rate even before you found your new home?

Some of my clients enjoy my rate update. This is little blurb about what has been happening in the interest rate market. Feel free to contact me if you would like to start receiving it.