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Old 09-17-2013, 12:25 PM
 
Location: Bend Oregon
22 posts, read 51,961 times
Reputation: 25

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We have a home for sale with a fair amount of activity. We also have a signed offer on a home with a contingency clause. Have a rate of 4.625 on our loan from Wells Fargo for a 30 year fixed. We are doing 5% down as the home is new with no landscaping. We will have enough for 10% down but ned the capital to finish the house. It will be a wash or slight gain with the equity form landscaping. Seller is paying 2.5% of purchase price to closing costs. We will prepay PMI and cover 85% of closing costs with this credit.

Big question I can get a 60 lock on the rate today or should I wait and see what happens with the Fed tomorrow? It sounds like from what I can tell listening to CNBC and watching Mortgages news daily it could go either way, but likely in the last 60 days the rate has adjusted for what may happen, and may not really change much. Would like to get the best rate obviously but wanted to wait and lock the rate when I get an offer on our house. The mortgage officer has told me if the house doesn't sell we are under no obligation (i.e. not out any money) if we can't go through with it.

Thoughts?

Thank You

Phil
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Old 09-17-2013, 02:05 PM
 
139 posts, read 160,167 times
Reputation: 88
My opinion is that (in the long term) the rates will keep going up. I think they might announce that they will scale back 10B$ a month but that's still a small spit in the bucket of 85B$. We have known for a while that they planned to scale back in the fall, that is the reason the rates started going up since early May. It's really hard to say tho, if I knew the answer I would be sitting on a beach somewhere with a rum and coke.

I was in a similar situation in April/May, not sure if I should lock or not. I locked the day before they rates started creeping up from low 3's and it saved me thousands of dollars in the long term, but ultimately you never know. However, in the long term, the rates will go up. Good luck on your decision.
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Old 09-17-2013, 02:21 PM
 
3,318 posts, read 7,255,247 times
Reputation: 4095
Just lock it and move on with your life. It's really not that big of a deal compared to a hundred other aspects of your financial profile.
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Old 09-18-2013, 06:44 AM
 
405 posts, read 476,480 times
Reputation: 265
Agree - lock it
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Old 09-18-2013, 08:07 PM
 
Location: Bend Oregon
22 posts, read 51,961 times
Reputation: 25
Thanks for the comments. Talked to the Mortgage officer yesterday. We decided to wait mostly due to the fact I don't have an offer on my home yet.

Looks like it worked out ok.

Thank you,

Phil
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Old 09-19-2013, 01:20 PM
 
405 posts, read 476,480 times
Reputation: 265
That worked our well for you. But of course personal circumstances always trump everything else. 30-year fixed rate dropped from 4.5 to 4.125 with 1 point overnight at the credit union I track as my barometer. I would be surprised if it goes much lower of stays down there for long. Good luck with your sales process and lock this in soon!
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