SAN FRANCISCO, CA — Feb. 18 (FreeRateUpdate.com) - Rates for our POV* Mortgage product came out today and repriced for the worse with most Wholesale Lenders. In fact one Lender had a two reprices within 18 minutes of each other! More on that later. Conforming Rates at 4.875% with Jumbo Conforming Rates at 5.0% SUPER Jumbos at 5.75%. Questions and scenarios are always welcome at lololoans@yahoo.com
Did the rate increases have anything to do with the Fed’s action today? Probably..however remember that one key issue that will drive rates UP is fear of inflation and the Fed raising the Discount Rate tells me that it may be a concern. Actually, I think it SHOULD be a concern given today’s Economy which is why locking in a nice, safe, 30yr fixed is the way to go…
LOCK THAT BOOGIE! Ok with apologies to Commander Cody and his lost Planet Airmen, it is really Rock that boogie but I digress…LOCKING your rate with your Lender involves something akin to eating jello with a fork. Once agreeing to a interest rate and terms get the GFE asap from your Mortgage professional. As mentioned above, rates can be fast and furious with lots of changes over the course of a day. Fortunately, most Wholesale and Major Lenders allow Loan Officers to lock the rate online so it is an improvement of sending the carrier pigeon and waiting and hoping for the return lock confirmation. Remember..the shorter the rate lock period the better the rate, however on the other side of the coin should you go past the date the lock expires there will be a fee to extend that rate lock period. Do NOT under any circumstances pay for a rate lock or a rate lock extension. Any Broker that asks you to is probably one step removed from selling 1978 Pintos on the car lot and you should run, not walk away!
*POV = Plain, Old Vanilla Home Loan: 30yr fixed, fully amortized, at least 20% equity, Single Family Residence, Owner Occupied. Better rates and prices apply to owners of knot tying merit badges. I never could do those!