Hi guys long time lurker here. I have gained a lot of valuable insight from this board. Any way I'm in the process of buying a new home. The house is supposed to be finished by Aug or Sept. So I have about 6 months until close. This is my first home purchase and I'm confused about when I should lock in my rate. I understand most lenders will give 30 day rate lock at no cost, but do you guys think interest rates will rise in the next 6 months? Do you guys think I should rate lock within the next couple months? Thanks for helping a newbie out.
Mortgage Rate Lock?
- Thread starter RC383
- Start date
NEW -> Contingent Buyer Assistance Program
no one is saying that they know for sure. they are trying to help a guy out by giving them *their* input/opinion. he will have to live with the consequences. please answer those 4 questions and give a single word answer to "do you guys think interest rates will rise in the next 6 months?"
you always claim that you study data and trend so use your sophisticated magic 8 ball and give an answer. lately, you seem to dance a bit more than you normally do and are avoiding any direct answers. maybe *you think* you are trying to teach a man to fish but you are not.
These days you're following me around and venting about your issues with me. What gives? I'm telling you that venting at me online isn't going to make things better for you in your life. It makes you look like a psycho, and while you're mad, I'm literally laughing at how dumb you look. You're one of the reasons I am very hesitant to reveal details about my life on this message board because I'm afraid you might leave a dead dog on my door step out of your "frustration and anger" with how your life is going.
Chill out.
Welcome (and congratulations) RC383,
I agree with IndieDev's (albeit colorful) response that nobody knows definitively what the market for mortgages will look like in 6 months.
Anyone that says he or she does, is selling you a bill of goods.
I'd suggest as an alternative to your question, that you look at your own situation and ask yourself, "Does what's currently on the table get me where I need to be?" If you'd be happy in getting the property and the associated loan under the terms that are available, and you understand your own risks/assumptions, then you can move forward confidently. If not, you can also make the changes with confidence.
I hope this is helpful, I'm not trying to be snarky.
-IR2
Gee whiz IrvineRealtor, I'm soooo tired of you dancing around, and giving out answers based on sound logic and an understanding of how mortgage rates can behave over a period of time.
You remind me of a management consultant from some crappy show no one watches on Showtime because it sucks, and cable is a big waste of money, and time.
IndieDev
New member
Hard to say. Here's some questions to ask.
- Will gas hit $5 a gallon?
- In the next 6 months do you see the prices of commodities rising?
- How will the 10 year treasury note perform?
- Optional: Will Ron Paul win the GOP primary?
If you can answer at least 3 of those with definitive answers, then you'll know whether rates will be rising or falling.
- Will gas hit $5 a gallon?
- In the next 6 months do you see the prices of commodities rising?
- How will the 10 year treasury note perform?
- Optional: Will Ron Paul win the GOP primary?
If you can answer at least 3 of those with definitive answers, then you'll know whether rates will be rising or falling.
WoodburyDad
New member
Personally, I don?t think rates will go up over the next few months and would lock closer to completion.
usctrojancpa
Well-known member
I agree, I think rates will bounce around where they are in the time period you are looking to close. I would not pay for an interest rate lock...they get more and more expensive the longer they are. Congrats on your upcoming purchase, I replied to your PM.WoodburyDad said:
IndieDev said:
no one is saying that they know for sure. they are trying to help a guy out by giving them *their* input/opinion. he will have to live with the consequences. please answer those 4 questions and give a single word answer to "do you guys think interest rates will rise in the next 6 months?"
you always claim that you study data and trend so use your sophisticated magic 8 ball and give an answer. lately, you seem to dance a bit more than you normally do and are avoiding any direct answers. maybe *you think* you are trying to teach a man to fish but you are not.
IndieDev
New member
rkp, I'm not sure why you're following me around lately, and trolling threads. Why not provide your own answer to his question instead of following me around unless you're RC's mouth piece. Don't use me to vent your frustrations about your life, your declining 401k, and your inability to make a decision to buy a home that you readily admit could plunge in value drastically.
I already apologized for hurting your feelings, but you're acting like a scorned bitch right now.
I already apologized for hurting your feelings, but you're acting like a scorned bitch right now.
RC- glad you changed from lurking to participating...
my gut says that rates will stay around the same and if any changes happen, would be +/-.5%.
does the builder have an in-house lender? as they are tied to the builder, can they give some better idea or offer a 6-month lock for a modest fee?
congrats on purchasing...would like to see a post of how you decided what to buy
my gut says that rates will stay around the same and if any changes happen, would be +/-.5%.
does the builder have an in-house lender? as they are tied to the builder, can they give some better idea or offer a 6-month lock for a modest fee?
congrats on purchasing...would like to see a post of how you decided what to buy
IndieDev
New member
Live and let live. In one thread you're pouring your heart out to me about how your family needs a home and how you need input about buying a home in Woodbury despite price weakness, or in another thread you're crying about how your "investment" into your 401k has tanked and why it sucks and you need advice, and I was kind enough to give you a response in both instances. The guy asked a question and I gave an answer. When did it become your job to make public your personal beef with me in the guise of "critiquing" my answer?
These days you're following me around and venting about your issues with me. What gives? I'm telling you that venting at me online isn't going to make things better for you in your life. It makes you look like a psycho, and while you're mad, I'm literally laughing at how dumb you look. You're one of the reasons I am very hesitant to reveal details about my life on this message board because I'm afraid you might leave a dead dog on my door step out of your "frustration and anger" with how your life is going.
Chill out.
you are an interesting person indie. you are extremely bothered by what people think of you but you dish out insults left and right.
in 2 minutes after posting, you added this line: Don't use me to vent your frustrations about your life, your declining 401k, and your inability to make a decision to buy a home that you readily admit could plunge in value drastically.
why edit your original...point was made but then you have to make things personal as usual.
i am not angry or mad like you think...and you sure do make a lot of assumptions about people. like i said, tired of you indie. my response was same as qwerty's albeit more snarky
in 2 minutes after posting, you added this line: Don't use me to vent your frustrations about your life, your declining 401k, and your inability to make a decision to buy a home that you readily admit could plunge in value drastically.
why edit your original...point was made but then you have to make things personal as usual.
i am not angry or mad like you think...and you sure do make a lot of assumptions about people. like i said, tired of you indie. my response was same as qwerty's albeit more snarky
IndieDev
New member
I'm pointing out, as usual, when someone ask a question, I will always give honest, useful, feedback (like I did with your 401k, and Woodbury purchase decision issues).
Also if you aren't "mad", then I question your motives for following me around from thread to thread. Your first response in this thread was specifically to try and vent at me, rather than simply answering the original question. I think that's very telling. I'm an expert at analyzing human behavior, it's part of my job.
I think if you have some issue with me, you should send me a PM, and we can discuss why it is you have internalized feelings for me. Like kalbi, I think there is something deeper there that needs to be let go, and I can help you get there rkp. Together, we can get your life back on track.
Also if you aren't "mad", then I question your motives for following me around from thread to thread. Your first response in this thread was specifically to try and vent at me, rather than simply answering the original question. I think that's very telling. I'm an expert at analyzing human behavior, it's part of my job.
I think if you have some issue with me, you should send me a PM, and we can discuss why it is you have internalized feelings for me. Like kalbi, I think there is something deeper there that needs to be let go, and I can help you get there rkp. Together, we can get your life back on track.
irvinerealtor
Well-known member
RC383 said:
Welcome (and congratulations) RC383,
I agree with IndieDev's (albeit colorful) response that nobody knows definitively what the market for mortgages will look like in 6 months.
Anyone that says he or she does, is selling you a bill of goods.
I'd suggest as an alternative to your question, that you look at your own situation and ask yourself, "Does what's currently on the table get me where I need to be?" If you'd be happy in getting the property and the associated loan under the terms that are available, and you understand your own risks/assumptions, then you can move forward confidently. If not, you can also make the changes with confidence.
I hope this is helpful, I'm not trying to be snarky.
-IR2
everyone, thanks for all your responses and opinions. I will more than likely wait as long as I can before committing to a rate lock. The cost of a 6 month rate lock doesn't make any sense. I'm hoping rates will stay low and perhaps a 90 to 60 day rate lock would make more sense when the time comes.
RC - can you negotiate with the builder and in house lender that your offer is based on prevalent rates and if it goes by so much more, you are still willing but they need to add some incentives or buy down the rate?
my thought is that builders have to deal with this for all their sales and if they can smooth out the uncertainty, it would help them sell more.
my thought is that builders have to deal with this for all their sales and if they can smooth out the uncertainty, it would help them sell more.
IndieDev
New member
IrvineRealtor said:
Gee whiz IrvineRealtor, I'm soooo tired of you dancing around, and giving out answers based on sound logic and an understanding of how mortgage rates can behave over a period of time.
You remind me of a management consultant from some crappy show no one watches on Showtime because it sucks, and cable is a big waste of money, and time.