MortgagesUndressed

For new readers, most of the time I say lock at application. Especially if you are on the edge of not qualifying and a rate increase would torpedo your purchase.

With all the latest business news we might see some decline.

The game is serious if played for real. It was a way I could get borrowers that just had to play the market to only play for a short time.

The rules. You don’t lock on day one. Each business day thereafter you call me about 10AM my time. If the rate goes down, you float. If it goes up you lock and have lost. Each day it goes down you float another day. The first day up you lock.

So lets play today. I will take one of our major lenders rate sheet. I will look at a par rate, no fees and no rebate. Each day I will compare and report how much in rate or fees you gained or lost. The last two times I have done this we have had a better rate. So this may be pressing our luck.

As one client says, locking or floating is just like going to Las Vegas. Yep. Except, the difference shows up in your house payment each and evey month.

Larry Cragun.