FHA Mortgage Houston Information

Need some help on deciding whether to lock or float your mortgage rate? Let me see if I can help.

Each week, I participate in Bankrate.com’s Mortgage Rate survey and this week’s results may help you make a money-saving decision.

The Predictions

Here’s what the group is saying:

• 31% predict mortgage rates will increase
• 16% predict mortgage rates will decrease
• 53% predict mortgage rates will remain unchanged

I expect mortgage rates to remain unchanged.

My advice not be appropriate for your specific situation and I’m not always right. You may be better off trying to eat super cold ice cream really fast.

Either way, here’s what I told Bankrate.com:

“With bond markets being abandoned last week, rates took a slight increase as predicted. I do not foresee any “market-shattering” news to come out that will swing mortgage rates in either direction, however the day-to-day volatility is still there and should be followed closely. Remember, there is lot more room for mortgage rates to rise than improve, so be on the defense.”

Rates are very sensitive these days, so you must be prepared to lock. Gambling should be completely out of the question.

Floating vs. Locking – What’s Your Strategy?

People often forget that today’s mortgage rates are a gift, but instead, are treated as a given.

In our current mortgage environment, consumers must also understand that underwriting is actually a tad bit more important than the mortgage rate itsef. The lowest rate does you absolutely no good if you can’t close on it.

With that being said, the Fed has exited the mortgage bond market and the economy is already on it way to recovery, so investors will be taking their money out of the safe-haven (bonds) and into the equity markets, causing rates to inch up. Rates fluctuate week to week, but the point where you save money is knowing what rates are doing DAILY. One adverse intra-day reprice can cost you thousands in the long-run, and this is where it pays to have a knowledgeable and market-savvy loan officer on your side.

If you are looking to purchase or refinance your home, get with a great lender, start on a loan application, know your payment limits, and have their number on SPEED DIAL (you think I’m kidding, but I’m not). This way you’ll be ready to lock in and beat any bad news later on.

I’m always available for phone calls or emails. Applications are about a 5 minute process, and can be done over the phone or via my online secure-application.