Locking a Mortgage Interest Rate Fast!
Just lock that mortgage rate stupid!
I am going to make this post rather…short. I am not even going to go into what I have been saying aobut mortgage refinance and purchase interest rates, and the general public, who feel that they know everything about the mortgage and financial markets. I am going to give it to you RAW, and talk with you about when the right time is to lock a mortgage interest rate. It does not matter if you are buying a home or doing a refinance.
People are always trying to “time” the housing and mortgage markets. So when is the right time to lock your rate…NOW! Stop playing around waiting for the mortgage refinance rates to drop from 4.875% to 4.75% to satisfy your obsessive compulsive nature. It’s sickening.
Let’s say that rates have been heading downward for a week or two: Mortgage rates are below 5% and refinance activity is surging. So you now have an opportunity to lock. Shall we do it today or wait for another few weeks and risk that rates will go up? Place your bets.
LOCK IT! If it makes sense, sounds reasonable, and saves you some refinance money, JUST LOCK THE RATE! One day, the stock market jumps, the 10-year Treasury bondrises and BOOM, just like that, your 5% mortgage refinance rate jumps to 5.5% and you’re horrified!
I have given you some real numbers here because I want you to understand how difficult it is to predict the future. If you feel a little abused by this little lesson, welcome to the real world. Time to grow up and start learning about how mortgage and other financial markets really work. Turn off the MTV junk and the soap operas, and start learning about real life.
-end rant.
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