Interst Rate Quotes......and Locking Rates???

[Anonymous]

When you are quoted an interest rate...is that usually based on interest rates at that moment???...

I ask because I was conditionally approved for a new build....set to close in March...but my GFE says 6.000% interest rate...today FHA rates are 5.5%...and my mid score was 648...

So is this just a quote....and whatever I lock it in around March...well as early as 45 days before completion of the home...sometime in Feb....that's it???....

[DallasLoanGuy]

the longer the lock, the more it costs.... <= each rate has a cost to buy. you can buy at par not cost(pay points) you anything.

So... if par = 5.5% then a long lock might be 5.625% for example.

I usually quote on a 30 day lock.... if someone wants to lock longer, they may or may not get that rate.... depends on the cost difference.

until you lock, you are floating. and can negotiate your rate up until the very second you lock.