I almost forgot to mention it, so much has been going on. On Tuesday we locked in our interest rate! We couldn't take it and we finally just "did it". We locked in at 4.375 with -.375 credit/discount with 1 loan origination point! I am very pleased. The best rate if I lucked up would be 4.25 but 4.375 works just fine. I was just hoping the rates would remain at 4.5 and we went down even more. :)
Note: Each .25% reduction or addition is about $60. So if you lock in at 5% and your mortgage is $1,060.00 and the rate drops to 4.75 your rate will be $1,000.00. I hope this helps someone.
I am happy I do not have to stalk our loan officer anymore. :)
That's it for tonight! Happy building!
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ReplyDeleteWhere did my reply go? =( I replied but it's gone!!!
ReplyDeleteOk...take 2! lol
Congratulations!! That's an awesome rate!!
You locked in at a great time too. Rumors have it that if the debt ceiling thing isn't fixed soon (by Aug. 2), interest rates are going to climb fast.
So happy for you!!!
Weird!!! I had a commented. It didn't post, so I wrote a new comment. Then they both posted!!! LOL I fixed it! =) Sorry!
ReplyDeleteCongrats...that is an awesome rate...that is one big box with a checkmark in it now!!!
ReplyDeletelol, Noey that has happened to me before too! Thanks! I didn't hear about the rumor but I have been listening to the radio about how the big guys cannot make a unified decision so I have been a little nervous, but that makes me feel even better about locking it in knowing that! First the Morgage insurance went up in April, now possibly the interest rates...we are one lucky bunch!:D
ReplyDelete@ BD Thanks! Yes, this was a huge item I wanted to cross off my list. So happy! Almost your turn to lock it too!
OMG Congratz to you!!! I am SO living through you'allz experiences right now. Go Go Go Go (Kelly Rowland Voice)
ReplyDeletelol @ Carlito! Thanks! Since March I had been hoping for another Courtland blogger to appear so I could "live" through them, but no such luck until you came along. Eventhough it's late in the game at least I could see your options, model pics and a few other things to help me even though I'm nearing the end. :)
ReplyDeleteI have two questions.
ReplyDelete1. What do you mean by "-.375 credit/discount"?
2. What do you mean by, "so if you lock in at 5% and your mortgage is $1,060.00 and the rate drops to 4.75 your rate will be $1,000.00"? I thought if lock-in and the rate drops, you're SOL.
@ DT,
ReplyDelete1. -.375 is the discount the lender provides for a rate, all loans have a 1 point loan ordination fee(1% of loan usually)...so that -.375 would be subtracted from that 1pt fee and it would lower closing costs.
2. Once you lock in yes that is the rate you will have unless it expires. I was just trying to show cost comparisons. When our loan officer gave us our estimates it was using an interest rate of 4.5 but now that the rate we have is lower 4.375 we will pay about $30 less monthly on our payment.
I hope this helps. We lucked up and our rates were lower than expected. ;)