If you've been floating your loan or have yet to apply for a refinance because it just didn't seem worth the hassle, congratulations, mortgage rates hit new lows today, it's now worth the hassle! If you've refinanced in the last 20 months, there is a darn good chance your refinance option is back in the money, again!
The best 30 year fixed mortgage rates have fallen into the 4.125% to 4.375% range for well-qualified consumers. Some lenders will even go as low as 3.875% if the borrower is willing to pay points. Although the 4.125% quote isn't being offered by the large retail banks (sorry retail L.Os), the smaller mortgage bankers and independent brokers do have access to loan pricing that will allow them to offer new rate lows.
So this brings us full circle on the advice we offered consumers almost one month ago today....
The "best executed" lock/float strategy comes down to finding an originator who knows the loan market, studies underwriting guidelines, and just plain old gets the J.O.B done. You have to let the loan officer earn their commission. That's how you "ride the float boat" in this environment...make sure you have a damn good skipper. Plain and Simple.
Oh before I forget, the disclaimer: Loan originators will only be able to offer these rates to borrowers who have perfect credit profiles and enough equity in their home to qualify for a refinance. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the "perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan a risky investment.
If you've been reading this blog and recently locked your loan and now feel "jipped"...you shouldn't. The annoyance of reapplying at another lender adds to your total transaction costs, plus you will also have to get another appraisal, which can put the entire deal in jeopardy if your home value is questionable. If you're that upset about locking, you should contact your lender and ask if you can renegotiate.
Don't get greedy people. We've seen lenders come out one day, offering the most aggressive loan pricing we've ever seen only to have them cushion it (worsen) the next. It comes and goes as lenders need production, while this time could be different, there is never a guarantee. Either way, loan pricing will still be super aggressive tomorrow.
PS...I hope fallout isn't terrible!