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Tuesday, June 17, 2014

Rate Lock

After a very long week of 7 night shifts, I was awoken by a call from NVR yesterday afternoon. To be honest I was just so tired, I wanted to get off the phone as soon as I could after hearing what the rate for the day was. Funny how they want you to make decisions right then on the spot. Initially, when I signed my Purchase agreement and got my good faith deposit, it was based on a rate of 4.25% fixed rate VA loan. Yesterday, they told me the rate was 4%, which only required the origination fee. Since that is included in closing, and I'm getting back most of my Good Faith Deposit, I decided I would go ahead and lock in at 4% for 45 days. 45 days takes us to 31 July, so gives us a week of flexibility on closing. The rate has been competitive to what USAA was offering me, so I went with NVR. USAA will be my back up plan if anything horribly goes wrong. I suppose I could have asked about buying down the rate further, but I need to buy another Living Room set for the man cave, blinds, paint etc.  Now we will wait on whatever papers NVR sends us to complete the lock process. I can live with 4%.  I just hope the rate does not go down too much between now and closing and make me regret locking so early.

5 comments:

  1. Locking in is such a gamble! Especially with NVR asking for an answer on the spot. Like I said on my recent blog, they had to make us answer by 5:00pm when they e-mailed us that day. Bleh. I believe we made the right decision. 4.00% is better than our previous 4.25%. I also hope it stays like this for a while and not regret it in the future.

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    1. I agree Kimmie...chances are we could have locked on Friday and it would be same rate. But why gamble? As long as it is better than what we initially had and is competitive with other mortgage companies, I think we did well, considering the incentives we got. USAA rates were offering a 4.0% and offering -0.500 points back, or 3.75 if you pay 0.375 points...I could have probably paid down points, but in the whole scheme of things and basically closing at zero cost to me with incentives, I can't complain.

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  2. I guess you're right. It's better than paying 7+% interest rate 20+ years ago!

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  3. exactly...It's fixed rate. No chance of it rising.

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  4. Nice! That's a great rate for a fixed mortgage, congrats! I think I am more obsessed with checking rates now than I was when we were looking to lock!

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