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Mortgage Rates fluctuating this week? or lock it?? #6296712
08/07/18 07:26 PM
08/07/18 07:26 PM
Joined: May 2014
Posts: 201
Lebanon, Missouri
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H5Farm Offline OP
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H5Farm  Offline OP
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Joined: May 2014
Posts: 201
Lebanon, Missouri
I know there are some banker types here. I got my closing date moved up on my new farm last week so my bank will now let me lock the rate. Before last week my closing was 60 days off and I could not lock any rate.

I have played the rate game for about a week and a half now that they guy I bought it from wants to close earlier. The rate has not budged from 4.75% for a 30 year fixed loan.
Every now and then before I could lock the rate flexed down to 4.65%. However it is within 40 days of closing and its time to lock in the next few days. I have everything else in place with my bank. I dont want to switch banks to get a lower rate. I am talking about the rate overall.

My loan officer said the rates in the past would be 4.75 for several days but then every once in awhile drop to 4.65%. So for now that my closing date has moved up and I am able to lock a rate they have not budged. Should I just lock and say screw it or ride it out a few more days. They can always go up as well. I have until Friday to lock.

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6296843
08/07/18 10:03 PM
08/07/18 10:03 PM
Joined: Dec 2006
Posts: 1,973
Ohio
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Computer Hater Offline
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Ohio
If you are borrowing $200,000.00, the difference is only $200.00 for the year or about $16.67 a month. Not much but every little bit helps. I would recommend going with a 20 year or 15 year loan if you can swing it. You will save tens of thousands of dollars, if not a few hundred thousand dollars over the life of your loan. Obviously the savings would depend on the amount you are borrowing. Banks like to have people take 30 year loans because they make lots more money. If you can possibly swing a shorter loan, have someone show you how much your total out of pocket money would be over the life of the 30 year loan versus the 20 year loan or 15 year loan. It will be an eye opener.


Randy
Member NTA, FTA
Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6296860
08/07/18 10:25 PM
08/07/18 10:25 PM
Joined: Dec 2006
Posts: 2,958
Va
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pass-thru Offline
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Joined: Dec 2006
Posts: 2,958
Va
15 years loans are great if there are no concerns that cash flow may be an issue in the next 15 years...BUT when things get tight, it's nice to have a smaller payment. And you can always make an extra mortgage payment or two if possible, but not required, to accelerate satisfaction of the loan and reduce the amount of interest paid.

A month from now you probably won't spend much time thinking about when you locked up the loan....it's a coin toss and you could end up paying more by waiting a few more days.

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6296880
08/07/18 10:49 PM
08/07/18 10:49 PM
Joined: Sep 2013
Posts: 4,822
Nevada
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nvwrangler Offline
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nvwrangler  Offline
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Nevada
And if you can put the minimum down and then make a payment on the day you sign the loan docs. It takes years off a 30 year loan. Because your 200 grand loan you only owe say 195 on principle and save that extra interest. Also pay every 2 weeks makes one extra payment a year same with 100 bucks extra a month. All saves big money in interest.

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6296882
08/07/18 10:54 PM
08/07/18 10:54 PM
Joined: Jan 2014
Posts: 2,081
NW MO
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TurkeyTime Offline
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Posts: 2,081
NW MO
Is it Farm Credit Services? If so they will let you pay $200 to lock in a lower rate on a fixed rate if it goes down later. I have done this twice and the $400 has saved thousands in interest.

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6296907
08/07/18 11:45 PM
08/07/18 11:45 PM
Joined: May 2014
Posts: 201
Lebanon, Missouri
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H5Farm Offline OP
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H5Farm  Offline OP
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Joined: May 2014
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Lebanon, Missouri
Closing now on Sept 18. They dont offer float down. Its only for $121,000. I put $145,000 down via 1031 from my old farm sale a few weeks ago.

Loan is staying in house at credit union. Not much in fees other than appraisal.

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6296962
08/08/18 05:58 AM
08/08/18 05:58 AM
Joined: Jan 2012
Posts: 2,967
Ohio
OhioBoy Offline
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OhioBoy  Offline
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Posts: 2,967
Ohio
I wouldn't sweat .1% and 4.75% is a descent rate. If its 3% in five years just refinance but its doubtful its going to do that. FYI There are probably people on here that have financed things at 16% back in the day.

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6297243
08/08/18 03:29 PM
08/08/18 03:29 PM
Joined: Jan 2007
Posts: 2,136
B61-12 vicinity, MO
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TreedaBlackdog Offline
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B61-12 vicinity, MO
H5F -

I would seriously consider looking at the 15 year rates.....Though initial payments will be higher at first - you will get accustomed to them and have 15 years of financial freedom at the end of it. Cancel cable, smart phone bills, and another luxury expense and you will have made up the difference.....

Re: Mortgage Rates fluctuating this week? or lock it?? [Re: H5Farm] #6297633
08/08/18 11:22 PM
08/08/18 11:22 PM
Joined: Dec 2006
Posts: 7,475
WI>>>MN >>>WI
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WI>>>MN >>>WI
I ain't got no crystal ball.

So, I always go for the longer term (30 years in this case), but double up on the payments. Doubling up on the payments doesn't mean twice your current payment. It means pay the current principal and interest, and the principal of the last payment. If you don't have the table, don't worry about it, just pay an extra hundred or two. The next thing you know, the thirty year mortgage is paid off, and you're still a young man.


Man who mistake shillelagh for fairy wand; see pixie dust, also.
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