Closing in 40+ days, Lock rate now or wait?

peter1974 · ‎11-17-2020

We are closing on new construction in about 40+ days and I asked about rate lock options on an FHA and was given these:

Middle Score: 644

1) Rate: 3.125%

APR: 4.306%

2) Rate: 2.75%
APR: 3.956%

+$1,300 added to closing costs

-$70 less monthly payment

Should I lock now or just wait it out?

CreditOnTheRise1 · ‎11-17-2020

@peter1974 wrote:
We are closing on new construction in about 40+ days and I asked about rate lock options on an FHA and was given these:

Middle Score: 644

1) Rate: 3.125%
APR: 4.306%

2) Rate: 2.75%
APR: 3.956%
+$1,300 added to closing costs
-$70 less monthly payment

Should I lock now or just wait it out?

I'm about 35 days out from closing and I locked last week around the 40 day mark. My mid score is 664 and I'm doing FHA as well. I locked at 2.625. My thoughts would be to go ahead and lock at the 2.75 rate. You'll make the $1300 back in 18 months which is no time at all...especially if you have the money available and plan to stay in the home for a while.

peter1974 · ‎11-17-2020

@CreditOnTheRise1 wrote:
@peter1974 wrote:
We are closing on new construction in about 40+ days and I asked about rate lock options on an FHA and was given these:

Middle Score: 644

1) Rate: 3.125%
APR: 4.306%

2) Rate: 2.75%
APR: 3.956%
+$1,300 added to closing costs
-$70 less monthly payment

Should I lock now or just wait it out?
I'm about 35 days out from closing and I locked last week around the 40 day mark. My mid score is 664 and I'm doing FHA as well. I locked at 2.625. My thoughts would be to go ahead and lock at the 2.75 rate. You'll make the $1300 back in 18 months which is no time at all...especially if you have the money available and plan to stay in the home for a while.

Thanks! Yes, we have the funds to cover the additional cost, so no issue there. And we definitely plan to be in the house a long time.

Anonymous · ‎11-17-2020

Congrats guys! These are really great rates you got!

I agree with @CreditOnTheRise1 i would PERSONALLY lock now although forecast for the next 30-60 have rates mostly standing firm

https://longforecast.com/mortgage-interest-rates-forecast-2017-2018-2019-2020-2021-30-year-15-year

peter1974 · ‎11-17-2020

@Anonymous wrote:
Congrats guys! These are really great rates you got!

I agree with @CreditOnTheRise1 i would PERSONALLY lock now although forecast for the next 30-60 have rates mostly standing firm

https://longforecast.com/mortgage-interest-rates-forecast-2017-2018-2019-2020-2021-30-year-15-year

Thanks, I pulled the trigger and locked it!