Mortgage rate trend

[Anonymous]

To make a long story short, I locked my mortgage rate in at 3.875%, had to pay $500 to bring it down to 3.75%.  Since I am still 4-6 weeks away from closing, do you guys think the rate will drop more?  This is a large jumbo loan, so obviously it makes sense to pay the $500 even if it only drops .125% as it is a $50 saving per month.  My question is should I be patient and wait for it to drop .25 before I relock or just do it at every .125%

Thanks

[DallasLoanGuy]

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@Anonymous wrote:

To make a long story short, I locked my mortgage rate in at 3.875%, had to pay $500 to bring it down to 3.75%.  Since I am still 4-6 weeks away from closing, do you guys think the rate will drop more?  This is a large jumbo loan, so obviously it makes sense to pay the $500 even if it only drops .125% as it is a $50 saving per month.  My question is should I be patient and wait for it to drop .25 before I relock or just do it at every .125%

Thanks

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they will let you re-lock?

here is the best info for consumers to watch rates

http://www.mortgagenewsdaily.com/mbs/

[Anonymous]

Yes, when the rate jumped up two weeks ago.  My wife paniced and locked it at 3.875.  Now it is back down, had to pay $500 to bring it down to 3.75.  We can relock everytime we pay the $500.  I just want to see if it is worth waiting longer to hit 3.5 or just be safe and lock it at 3.625.  We have to be more conservative because this is a huge mortgage payment.  Rate just went down again today on the 10 year t-note, I might see 3.625.  

I will check out the site now

[ezdriver]

I sell new construction for a national builder so I see what people are getting for rates every day. Trying to time rates to the bottom is akin to catching a falling knife. You may catch it but you may be hurt. I recommend that to lock what you've got. That is a great jumbo rate.

[Anonymous]

With T-note dropping again, I am curious to see if we will see 3.625 or 3.5.  I guess I will just pay the $500 every time I see rate dropping.

I think after the last mortgage fiasco, they learned that jumbo loans are actually less risky.  Therefore most of the jumbo loan in CA are actually on par with regular loan, not the usual .25% jump.  Now the paperwork process is burdensome though, I have sent over 200 pages of documentation!!!