my nephew is buying a house and had locked in on a rate - hopefully they will now give him the lower one
“my nephew is buying a house and had locked in on a rate - hopefully they will now give him the lower one”
If he asks they will.
Most of the loans that I have locked for people will get re priced before closing. I will do this without people asking me because they will go somewhere else if I don’t.
As I understand it, this cut will not help us poor slobs. Might filter down to us but I highly doubt it.
The bond market drives the mortgage market.
he will not be getting the fed fund rate.
They wouldn’t give me a CD for more than 11 months at the current interest rate at the bank.
I didn’t have time to shop around so I took it.
Not if the rate is LOCKED. Once locked, it can’t change.
I am also in the process of having a house built with closing in early April. When I asked about the possibility of having the rate locked, the mortgage company said that they don’t lock rates more than 30 days away and once locked, it can’t be changed.
They also said that they were expecting further rate drops and that it wasn’t to my advantage at this time to lock the rate since they were expected to fall.
The rate has now been dropped three times since we first signed the contract on the house and is expected to drop some more at the end of this month and again next month.
Needless to say, I am glad that we couldn’t lock the rate when we signed the contract with the builder.
The only time when it is advantageous to lock the rate is if there is danger of it rising and at the current time, that is not expected to happen for a while.