I have a long close and am not sure if I should pay more to do a 60 day lock now or try and float until I can do a 45 or 30 day lock and get a better deal for the shorter lock period.  Any thoughts would be much appreciated.

Right now rates are very low.  Is there a possibility that if you lock now you might be giving up an eighth or even a quarter of a point...yes, but I think it is a slim possibility.  Rates are at lows for the year and in the last 12 months haven't been much lower.  Everyone in the mortgage business expects rates to start rising at some point.  Once they start to move up, the move will be rapid and you could blink over a 2 day period and see a rise of a half point or more very quickly.  You are getting an incredibly low rate on a mortgage right now and in my humble opinion, the upside risk is much greater then the downside risk.  Good luck!

What are you being quoted for a 60 day vs. 45 or 30?  Chris makes good points above, and if rates go up in the next couple of weeks than you'll probably be matching the rate you could get on the 45 or 30 for what you could get now on the 60.  Personally I don't think they'll get much lower than they are now, but if the loan size is large and an 1/8 or 1/4 saves you a lot each month than that's your call. 

Another thing to consider is if it's going to for sure close on April 29.  If you lock for 60 days now and have some last minute delays than you might have to pay for an extension.  So in some cases it makes sense to wait to lock until you know the end is in sight.  How is the process going so far and are you fairly sure you'll be closing by then (well, at least from what the bank has been telling you.)?

Thank you all for your input.  I have not received quotes for a 30 or 45 day lock as unfortunately they wouldn't apply to my situation right now.  For the 60 day lock we are being quoted a rate of 4.750 with a origination fee of .75% on a 30 year fixed FHA.  I don't foresee any issues with delays although we are very early in the process, but one would think that with the long close we should be able get any issues cleaned up in time.

Easy decision than, great deal, go ahead and lock it in and rest easy at night.

Anthony

The rate you are being quoted is excellant.  With all due respect, don't be greedy.  Rates are expected to go up in the near term, and you might end up kicking yourself over waiting for a savings of a few dollars or 1/8th movement in rate.

Good Luck.

SDMortgagefinder

I would recommend locking this loan and rate - it's a very very good rate - I have looked at the rates for the last 3 weeks - and this rate is as low as it has been ...

Thank you all.  I am now locked in.  I knew that was probably the right move just needed some guidance to confirm my feelings! 

Don't Lock!!!

Just kidding---great rate.  Please refer your friends to this site!!