Mortgage Loan Rates

[BobFromRox]

Good Morning.

Enjoy reading all the posts on ER. Would you lock a interest rate on a mortgage loan or let it float? Settlement date is 11/17/14. Current rate on a 15 year conventional mortgage is 3.5%

Thanks for all replies.

 

[panacea]

I would lock it in but that's coming from a pretty risk-averse person. I'd rather know what I have (especially when it's an historically low interest rate) vs. gamble for something better to possibly end of up something worse. I just know I'd be mad if rates went up and I could have locked in a lower rate... but I don't think I'd be as mad if I locked in the rate and rates went down. Same reason why I have a moderate allocation portfolio instead of an aggressive growth portfolio.

 

[RenoJay]

If you'll be there five years or more d definitely lock in. You can always refi if rates drop, but if they rise you'll be SOL.


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[Animorph]

Although rates look like they are currently dropping, it's not by a whole lot, and I would think there is still a risk of rising rates at any time.

Track Economic Index Trends and Graph Financial Industry Rates

I'd probably lock just because it's practically standard and free for a short term. But I wouldn't worry a whole lot if I had to let it float.

ETA: If you mean over the life of a loan, I'd only go fixed rate.

 

[BobFromRox]

I elected to lock the rate. Thank you for your replies.

 

[kgtest]

just locked yesterday at 4.125. Plan on paying her off in 18yrs with extra principle payments as often as it makes sense. Congrats to your rate lock. I would presume we are both close to closing....mine is Oct 30th.

 

[wolf]

No brainer. Lock in the 15yr. Many years ago, I paid, 13% for a home

mortgage. (prices of homes were of course, much lower then).

If you have excess cash, make a few extra payments, and turn the 15yr into a shorter one. (save a lot on interest).