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Old 11-03-2010, 11:32 AM
 
175 posts, read 654,857 times
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I got approved for a 4.25% interest rate. I heard that rate may go lower after Nov 5th. However, my loan officer said she had to shop around for this rate.

Should I go ahead and sign? Would mortgage rates go low enough to really make a difference at this point? I am also trying to close before the end of the year. Right now my closing date is scheduled for Dec 15th so that is a factor also.
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Old 11-03-2010, 01:50 PM
 
153 posts, read 548,622 times
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My closing date is set for Dec 13th, and I just locked my rate at 4.125%. It may go down a little by then, but I would be more worried about it going up, so I decided to lock. I have a 60 day lock, so I shoul dbe fine even if they have some sort of problem and need to extend my closing by a little bit.
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Old 11-03-2010, 03:47 PM
 
Location: Plano, Texas
1,676 posts, read 6,337,485 times
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many things have to be factored in to determine what interest rate you qualify for. Your FICO score, the state which your property is located, your loan to value, how much you are paying in closing costs, etc...

Rates about a month ago, assuming you had over 740 FICO scores and paying all costs including one point hit 3.75% for a 30 year fixed. That rate was only available for a day or so then crept higher.

Dont wait for rates to go lower... they may not. Plus many things outside of your control which may impact your down the road. What if your employer decides they dont need or cant afford your positiion? What if home values in your area go down further? What if you miss a payment and your FICO scores drop? Always remember, a bird in hand is worth 2 in the bush. Better to lock and find out rates went a little lower than it is to float and find out rates increased.
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Old 11-03-2010, 07:29 PM
 
Location: Union County
5,702 posts, read 8,144,245 times
Reputation: 4708
Quote:
Originally Posted by VictorBurek View Post
many things have to be factored in to determine what interest rate you qualify for. Your FICO score, the state which your property is located, your loan to value, how much you are paying in closing costs, etc...

Rates about a month ago, assuming you had over 740 FICO scores and paying all costs including one point hit 3.75% for a 30 year fixed. That rate was only available for a day or so then crept higher.

Dont wait for rates to go lower... they may not. Plus many things outside of your control which may impact your down the road. What if your employer decides they dont need or cant afford your positiion? What if home values in your area go down further? What if you miss a payment and your FICO scores drop? Always remember, a bird in hand is worth 2 in the bush. Better to lock and find out rates went a little lower than it is to float and find out rates increased.
I mean - wow... just reading the highlighted part and I would be blown away to think you're talking this person into buying a house.

What if any of these things happen AFTER you sink about 3x annual income into a piece of property? Strategic default on it?

To the OP - The Fed just came out and said today (at their quarterly meeting) that they're going to leave the fund rate between 0 to 1/4 percent... The banks will continue to borrow at no cost for the foreseeable future.
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Old 11-04-2010, 05:59 AM
 
Location: Plano, Texas
1,676 posts, read 6,337,485 times
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Quote:
Originally Posted by MikeyKid View Post
I mean - wow... just reading the highlighted part and I would be blown away to think you're talking this person into buying a house.

What if any of these things happen AFTER you sink about 3x annual income into a piece of property? Strategic default on it?

To the OP - The Fed just came out and said today (at their quarterly meeting) that they're going to leave the fund rate between 0 to 1/4 percent... The banks will continue to borrow at no cost for the foreseeable future.

No mikey, i am not and dont try to talk anyone into buying. I am just answering their question.

And you continue to tell people it is a bad time to buy yet in another post you told me that you are starting the process of buying. You sound like a liberal... do as i say, not as i do.
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Old 11-04-2010, 09:37 AM
 
175 posts, read 654,857 times
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This is for a refinance, on a 3rd generation family farm. I already owe the money and I'm not going to be selling out either ;-) if that helps

I did go ahead and locked the rate! My loan officer told me if the rate drops dramatically (wonder that means) then she can renegotiate the loan.
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Old 11-04-2010, 10:20 AM
 
Location: Union County
5,702 posts, read 8,144,245 times
Reputation: 4708
Quote:
Originally Posted by VictorBurek View Post
No mikey, i am not and dont try to talk anyone into buying. I am just answering their question.

And you continue to tell people it is a bad time to buy yet in another post you told me that you are starting the process of buying. You sound like a liberal... do as i say, not as i do.
Your posts clearly have a "might as well", "this is as good as time as any", etc feel to them... which, whether you believe it or not, looks to me as a push that this is a good time.

Buying / looking? Absolutely, in fact - I just got back from looking at about 10 resales in the area we want to buy in... How you get "liberal" out of making an educated decision is beyond me.

Overall I'm floored by the insanity of these sellers, so today (right now) based on list prices I stand by the fact that it's not a good time to buy. So taking that in context to this thread about interest rates, there's no real driving force to indicate to me at all that I need to pull the trigger in the short term.
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Old 11-04-2010, 10:59 AM
 
Location: Plano, Texas
1,676 posts, read 6,337,485 times
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I say liberal because the liberal motto is do as i say, not as i do. For example, Al Gore says oil is causing global warming yet at a conference he just attended in Switzerland i think, he left his vehicle idliing for over an hour and instead of taking a train he flew in a private jet. Us little people shouldnt do that, but it is okay for him cause he is rich and can buy carbon credits. You are constantly telling people it isnt a good time to buy, yet you are looking at buying.

Yes, i do feel now is a great time to buy for 2 reasons. Home prices are down, as you say the insanity of sellers, and interest rates are low. That is 2 great reasons to buy. Now, should someone with $100,000 of credit card debt and a shaky job outlook buy now, of course not. If however your financials are in order, have an emergency fund, a job, good credit and want to own a home, you should look at buying now.
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Old 11-04-2010, 11:00 AM
 
Location: Plano, Texas
1,676 posts, read 6,337,485 times
Reputation: 684
Quote:
Originally Posted by lmabernathy View Post
This is for a refinance, on a 3rd generation family farm. I already owe the money and I'm not going to be selling out either ;-) if that helps

I did go ahead and locked the rate! My loan officer told me if the rate drops dramatically (wonder that means) then she can renegotiate the loan.
Typically to renegotiate a rate lock, the par interest rate must drop .25%, then the lender will drop your rate .125%.
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Old 11-04-2010, 12:32 PM
 
Location: Union County
5,702 posts, read 8,144,245 times
Reputation: 4708
Quote:
Originally Posted by VictorBurek View Post
I say liberal because the liberal motto is do as i say, not as i do. For example, Al Gore says oil is causing global warming yet at a conference he just attended in Switzerland i think, he left his vehicle idliing for over an hour and instead of taking a train he flew in a private jet. Us little people shouldnt do that, but it is okay for him cause he is rich and can buy carbon credits. You are constantly telling people it isnt a good time to buy, yet you are looking at buying.

Yes, i do feel now is a great time to buy for 2 reasons. Home prices are down, as you say the insanity of sellers, and interest rates are low. That is 2 great reasons to buy. Now, should someone with $100,000 of credit card debt and a shaky job outlook buy now, of course not. If however your financials are in order, have an emergency fund, a job, good credit and want to own a home, you should look at buying now.
Al Gore?! wow... I wouldn't use that guy for an example of anything, maybe a putz or something like that.

Are you just skimming my posts?... I am telling people it isn't a good time to buy BECAUSE I am looking. I mean, seriously - how does that not make sense? I'm not randomly throwing poo, not knowing what I'm talking about because I am walking through these houses. The insanity of the sellers is what they think they can get for the garbage they're putting on the market.

You're sitting behind a desk selling mortgages and disagreeing with me... Calling things like Texas (your home state conveniently) as a whole won't see a RE decline any further and such. Maybe you bought at the height and drinking the hopium, maybe you're renting... heck, maybe you got yourself a "great deal" recently... don't know, no clue what your personal knowledge on the overall subject matter except that you sell debt. Yet, it seems like you're calling me out when I'm posting about my experience and research (as an actively looking potential buyer) and insinuating I'm "liberal" or have "an agenda". I can't be the only one who sees this as backwards.
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