another lock or float question

My escrow is scheduled to close 6/30, and my loan officer is telling me that I need to lock in a rate before 6/19. As the rate didn't go up further today, should I lock now? I'm quoted at 6.0% with 0.125 points. should I wait till tomorrow? It's still hard to believe that I'm cnosidering to lock at next to highest level of interest rates in the past two weeks.

help please!

Rates are slowly on their way back down - you have one week to make up your mind. A 6% with .125 points sounds like it is a little high if you are a strong borrower.

Are you going FHA or conventional? 30 year fixed or ARM? Stong credit score? Home, condo, townhome? Purchase or refinance? What is your LTV?

If you could answer some of those questions, we may be able to help you get a good deal.

I agree. Off the surface 6.00% with a .125% cost seems high if you're a strong borrower. There are of course many reasons your rate could be higher (lower credit, less down, etc) but seems a little high.

If you haven't gotten an updated quote today check again to see where you're broker is at. If he's the same as earlier in the week something stinks in Denmark.

Have a great weekend!

thanks troy and clem!

I'm going with conventional 30 year fixed. average credit score above 740. single family house, purchase. LTV is 51.6%, I'm financing 702k on a 1.36M property. as I'm in SF bay area, the amount is jumbo comforming?

My case is a little bit complicated as I'm putting down 10% cash as downpay, and the rest comes from a 0 interest loan program from my employer.

advise please!!

Okay, that is a jumbo conforming loan. The rate still seems a little bit on the high side with points. Make sure to double check the loan program from your employer - there could be a suprise in there (the devil is in the details) - If it is a true 0% interest loan from your employer, what is their name are are they hiring?

  to get to the 0% interest, one has to finish 6 years of Phd, 4 years of post-doc and 6 years of assistant professorship struggling everyday. no, 16 years of your life is not worth the interest rate.

as of today, I'm quoted at 5.625% with 1 point. should I lock it? It seems that there are lenders who's offering lower rate around, but since I'm closing on 6/30, is there enough time if I switch lenders, starting the whole application process all over again?

That's a competitive rate. I don't think you've got time to go through with another lender, on of the big reasons is the new appraisal procedures would require another appraisal from the new lender. Not worth the time.

Markets improved today and depending on the lender might not have made it through to mortgage rates. If we open flat or better Monday you should be even better than 5.625%. I would lock first thing Monday morning.

Have a great weekend!

Are you required to use that lender to get the 0% interest loan?  How long do you plan on being in the home?  Afre there any other options to the 0% loan?

i can go with any lender. probably 5-10 years...

Shopping for a better rate isn't going to save you a ton of money.  If you are comfortable with your originator, I would keep tabs on where the rate is with them and lock soon.