Should I lock my rate now or wait?
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I am in the process of buying a home in Oklahoma with an expected close date of Jan 31, 2008. My lender is working on the final approval and I have been told we should be able to lock our rate very soon. My good faith estimate currently is 6.059% on 30 year loan with $900 mortgage origination fee. My lender has said that because I am self-employed that this is a very good rate. My question is should we wait till the last minute to lock or lock now? It looks like the trend is downward on interest rates the past several months with a few bumps upward occasionally so I am hesitant to lock too soon. What should I do?
Should I lock my rate now or wait?You didn't say how much your loan was for. Usually the mortgage origination fee is equal to 1% of the loan. Anything more is high, anything less is low, but usually means that you pay a bit higher interest rate.
There are no 6.059% rates. I'm guessing this is the APR, which IS NOT your interest rate, but the rate plus the cost to borrow the money. Your actually rate should be a bit lower.
Even if the rate was 6.059%, this is a GREAT RATE for a self-employeed borrower.
I WOULD LOCK IN TODAY. You say that you are to close in less then 3 weeks, but still can't lock in surprises me. Usually you can lock in 30 days before settlement. And in MOST cases 60 days without a lock in fee.
Rates are great today. Will the go down in 3 week enough to actually make it worth the risk of waiting. NO.
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