OT: Mortgage Rates

[🏀]

Anyone got expertise in this field?

I'm floating right now on a house purchase. Just did the paperwork last night, so until the underwriters are done I can float.

Should I lock now or wait a little?

[4everwarriors]

Chill Bro, and respect the process.

[🏀]

Chill Bro, and respect the process.

Alright, I'm done. Too much Scoop today.

[nyg]

Reached out for my brother for you.  Not a banker, but a big bond trader on Wall Street, knows his stuff. 

He said pull the trigger now, but your call. 

[🏀]

Reached out for my brother for you.  Not a banker, but a big bond trader on Wall Street, knows his stuff. 

He said pull the trigger now, but your call. 

That's the sense I'm getting.

Really appreciate that call though.

[checkmarq]

If you lock now, most banks will allow you to float down by up to a quarter of a point if rates fall in the next 90 days. I would lock now if you are truly worried, but rates shouldn't raise by much if anything in the next 3-6 months.

[Sir Lawrence]

That's the sense I'm getting.

Really appreciate that call though.

What is the rate?

[Benny B]

Lock now.  Any volatility in interest rates over the next 90 days will skew higher barring a catastrophic economic event.

[🏀]

What is the rate?

4.625 on a 30-year fixed.

[Hards Alumni]

4.625 on a 30-year fixed.

That high already?

LOCK.

[🏀]

That high already?

LOCK.

AHHHH!

[Coleman]

Ugh, this worries me. I want to buy, but am waiting until after I get married in May of 2015.

I worry rates are going to be ridiculously high by then.

[4everwarriors]

Shotgun weddin's can be done for a whole lotta reasons.

[Marquette Gyros]

That high already?

LOCK.

+1. Wow. Glad I pulled the trigger last year.

[MUWarrior2007]

Ugh, this worries me. I want to buy, but am waiting until after I get married in May of 2015.

I worry rates are going to be ridiculously high by then.

Had the same worry, and we're getting married in September of 2014.  We pulled the trigger and are moving in April.  Couldn't risk the rates going any higher.

[MU Fan in Connecticut]

+1. Wow. Glad I pulled the trigger last year.

Me too.  Locked in at 3.75%.

[ZiggysFryBoy]

3.25% mofos.  30 year fixed.  Refied 2 years ago.

Down from 5 1/8 in 2005 when we bought.

We're looking to move but don't want to give up the basically free loan.

[Spotcheck Billy]

3.25% mofos.  30 year fixed.  Refied 2 years ago.

Down from 5 1/8 in 2005 when we bought.

We're looking to move but don't want to give up the basically free loan.

5.25% mofos. 30 years fixed. paid off in 18 years. 1.5 years ago  

kind of missing that tax write-off

[MU Fan in Connecticut]

Me too.  Locked in at 3.75%.

I did get rid of 3 years of the mortgage also in the refi with a smaller monthly payment.

[Sir Lawrence]

Ugh, this worries me. I want to buy, but am waiting until after I get married in May of 2015.

I worry rates are going to be ridiculously high by then.

Ridiculously high was in 1981 when I first bought.  These rates now are like the price of gasoline then.

[🏀]

3.25% mofos.  30 year fixed.  Refied 2 years ago.

Down from 5 1/8 in 2005 when we bought.

We're looking to move but don't want to give up the basically free loan.

That's where I'm at now. The value on some houses is just too good to pass up in my neck of the woods.

[rocky_warrior]

Ridiculously high was in 1981 when I first bought.  These rates now are like the price of gasoline then.

I'm not old enough to have bought a house then, but I remember people being excited to get DOWN to ~8%.  Crazy compared to these last few years.

4.625 on a 30-year fixed.

On (apparent) good recommendation from my banker, I locked at 4.5% 30-year fixed on Monday night (3/24 - the same day the offer was accepted).  Long term, 4.625 is a GREAT rate (see comment to Sir Larry...), so even though I'm wishing I could still buy at the 3.25% of last year, take the 4's and run (or rather...lock).

[Jay Bee]

Anyone got expertise in this field?

I'm floating right now on a house purchase. Just did the paperwork last night, so until the underwriters are done I can float.

Should I lock now or wait a little?

It depends on your specific situation and appetite for risk.

You essentially ax'd if rates are likely to rise or fall. Not even a mention of your timing (i.e., anticipated closing date, any provisions in the purchase agreement which require you to have funding finalized by a particular date, etc.). The answer to that is no one here knows.

It's a tricky time. Next week there are some data that could move things... if economic data is weak next week, we may see rates rise - but not necessarily.

This past week 4.50% was the most common execution price out there on 30-yr notes and from Monday rates actually improved (though they took a hit yesterday). 4.50%, though, is the rate I'd DEMAND for this past week, though.

Depending on the specifics of your timing and any related pricing changes re: lock period, I'd probably recommend floating for a bit. You can pull the trigger whenever. This coming week we could very well see most executions rise from 4.50% to 4.625%. But things would have to get really eff'd (and they always could, but...) to get yourself into a situation where your only options are above 4.625%.

Be confident. Float if the decision is between 4.625% or floating. (If you were in at 4.50% I'd tell you stay there.)
If rates rise past 4.625% next week, I'll pay you $20. If you're able to secure a rate in the future of less than 4.625%, you pay me a small commission equal to the rate differential X loan amount x 77%.

Another thing to consider: pricing on a float-down provision.. again, really need to know how far out you are on this transaction. But, you may be able to find a good price on the ability to float down if rates fall (which, again.. your rate is already high... maybe you have crappy credit like ZFB. He only got a good rate because the house is in his mom's name).

[reinko]

I live in a high cost of living area (Boston)... Without 20% down (which a minimum out here is at least $70K),  seems like such a bigger risk to go out and buy, versus renting.   Obviously the Mrs and I have to then maximize things like savings and retirement in the money we save from a mortgage.   Any other thoughts from folks that live in areas of the country like this (NYC,  DC,  Seattle,  SF...

[Coleman]

I live in a high cost of living area (Boston)... Without 20% down (which a minimum out here is at least $70K),  seems like such a bigger risk to go out and buy, versus renting.   Obviously the Mrs and I have to then maximize things like savings and retirement in the money we save from a mortgage.   Any other thoughts from folks that live in areas of the country like this (NYC,  DC,  Seattle,  SF...

This is pretty common in big metro areas. Sounds like you are doing the right things.

Home ownership is not always the best financial move in every circumstance, although as Americans we are programmed to think so. You have to look at the cost vs renting, and I'm some metros such as NYC, renting is significantly less expensive.

I rent right now and it's the right decision. I am still saving large chunks every month in my 401k, Roth IRA, and also taxable accounts. A mortgage can be a nice forced savings plan but it's not the only way to save or invest. Plus  I know too many people who bought, then wanted to move 3 or 4 years later to a new city and had to take a loss on their house. So they actually lost quite a bit of money. It's not smart to buy until you are ready to lay roots for 10+ years IMO