Interest Rate question from a young buyer (score, contract, closing)
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Hey guys, I am about to make my first home purchase here in the next few months, obviously never buying a house before... and beeing very young (22) I have much to learn about the market. I just had a question for your guys about the recent rising rates, I have a cred score of 708 and a few weeks ago was getting quotes in the mid to high 5% range, now as everyone knows I am getting quotes for around 6.27%. I know there is no defininate thing but should I try to lock asap or do interest rates look like they will fall agian? I am about to sign the contract for the house in 1 week, but it wont begin beeing built util late may, thanks ahead of time for all your help... oh by the way the mortgage I am looking to take out is about 140k and I will be putting around 5% down.
You can usually do a lock with a free float down. I don't think the float down period comes into play until about 30 days before closing - but basically it would give you the peace of mind that if rates were lower right before you were to close, you would be able to float down to the lower rate.
If construction won't even begin until late May then when are you planning to close? Locking a rate now is pointless IMO.
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