It can be a really tough decision when contemplating whether or not to lock in to a rate when obtaining a mortgage. Generally, when rates are as low as they’ve been, the conventional wisdom would say to lock – why risk it when the pressure is for rates to go up, at least theoretically.Well, they keep going down. Fortunately, for those clients who were locked in the last 30-45 days, we’ve been able to negotiate with the investors to get their rates down. A really great option that we, as brokers, are able to offer.
Now to the good stuff – currently, rates are ridiculously low:
– 30 year fixed conventional rates as low as 3.75%
– 30 year fixed FHA and VA rates as low as 3.75%
And of course rates are even lower for shorter terms, such as 15 years.
One may ask a next logical question like: should I lock if the trend is for rates to keep going down? Well, we’d say the conventional wisdom still suggests that if you’re in the market for a mortgage, either to refinance your existing mortgage or to buy a new house, it would be a bit risky to pass on these rates for the hope of them going even lower. Especially when there is the option of renegotiating the rate if it decreases enough from where you happen to be locked.
As always, feel free to contact us if you’d like to discuss your mortgage needs. (505) 830-9685.