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Old 02-09-2009, 10:16 AM
 
Location: Iowa
113 posts, read 386,963 times
Reputation: 60

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We are first time homebuyers who have secured a VA loan with our bank. If we were to lock in our rate now we would have an interest rate of 5% after purchasing 1.375 points. I think 5% is a good rate, but could we do better? Is it possible rates could go down in the next week or so? Is it just being greedy to hold out on locking in the rate? Seems to me like a bit of a gamble waiting and I don't want to get left out in the cold because I was selfish.
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Old 02-09-2009, 10:28 AM
 
305 posts, read 1,485,618 times
Reputation: 149
I am in the exact same position you are so I'll be following your post! Good luck. Oh, and I've got 5% and no points. I don't understand what points are.
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Old 02-09-2009, 10:32 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,103,103 times
Reputation: 952
They have been trending upwards for the last couple of weeks. If you are planning on closing within a few weeks and are happy with the current rate quotes you may want to consider locking. I don't see rates getting better in the short term.
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Old 02-09-2009, 01:01 PM
 
14,818 posts, read 18,845,280 times
Reputation: 11780
Quote:
Originally Posted by teebopop View Post
I am in the exact same position you are so I'll be following your post! Good luck. Oh, and I've got 5% and no points. I don't understand what points are.
In few words,
you can get any interest rate that you want,
if you pay 1 point (1% of the price of the mortgage) they give you a lower interest rate.

They give you a list of several different rates, the one that is "free" and the ones that you have to pay X points to get that rate.
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Old 02-09-2009, 02:32 PM
 
Location: Iowa
113 posts, read 386,963 times
Reputation: 60
I went ahead and locked the rate today. I think even if it goes down a little, I will be satisfied with 5% in the end. Thanks!
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Old 02-09-2009, 06:42 PM
 
706 posts, read 2,853,299 times
Reputation: 1013
Quote:
Originally Posted by teebopop View Post
I am in the exact same position you are so I'll be following your post! Good luck. Oh, and I've got 5% and no points. I don't understand what points are.

This is not with a VA loan though, right? Traditional conforming? I ask because my VA loan is at 5.5 with no points.
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Old 02-09-2009, 07:13 PM
 
305 posts, read 1,485,618 times
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Um ... errr ... it's VA. Sorry.

It might have something to do with our credit rating ... 830. Which took 3 years to get to ... from 670. A LOT of stuff got paid off AND we saved a hunk of cash.

Plus, it's from our own bank. Not a mortgage company/lender.
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Old 02-09-2009, 10:19 PM
 
Location: Iowa
113 posts, read 386,963 times
Reputation: 60
You might want to make sure you still have 5%. I don't think there is anyone offering that VA rate right now without points--of course it can vary from state to state, but that's a big variation.
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Old 02-10-2009, 11:18 AM
 
Location: Iowa
113 posts, read 386,963 times
Reputation: 60
Of course, rates went down a little today...those are the breaks.
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Old 02-10-2009, 02:28 PM
 
1,340 posts, read 3,235,854 times
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Rumor is within a few weeks 4.5% will be a given...

http://finance.yahoo.com/news/Mortgage-Rates-Likely-Headed-cnbc-14298020.html (broken link)
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