JHZR2
Staff member
Hi,
I put an offer on a home in NJ, and it was accepted. Due to lease schedules, which cant really be escaped from, I have to have the closing at the end of April.
OK, no big deal... contract says that I have until the 30th of March to submit written mortgage contracts. I can get a 7 day extension if needed.
Alright, so closing on the 26th of april, mortgage commitment on the 30th of march. This means that I need to apply for a mortgage earlier than the 30th.
I have high credit (well over 700), and a substantial net worth for someone my age (25). Im a good credit risk, and can get a rate for a 30 year mortgage of under 6%, with no PMI at 10% down... but I need to wait on it, as the lock is only 30 days.
Ill admit, Im not sure if thats a 30 day lock in business or calendar days, but Ill assume it is calendar days.
So, my issue is whether I should lock in my rate wth Navy Federal now, and pay a 1/8 point penalty (and potentially a 0.25% rate increase) to lock in my rate for 60 days, or if I should just stall all m y paperwork, and immediately request the extra 7 days.
I want to maintain the best deal possible, but do I chance it, put off applying, and save 1/8 point and come in closer to the due date, or just put in the application now, get the good rate, pay the 1/8 point and be locked in with all systems go?
Where do you forsee interest rates going over the next month?
Thanks!
JMH
I put an offer on a home in NJ, and it was accepted. Due to lease schedules, which cant really be escaped from, I have to have the closing at the end of April.
OK, no big deal... contract says that I have until the 30th of March to submit written mortgage contracts. I can get a 7 day extension if needed.
Alright, so closing on the 26th of april, mortgage commitment on the 30th of march. This means that I need to apply for a mortgage earlier than the 30th.
I have high credit (well over 700), and a substantial net worth for someone my age (25). Im a good credit risk, and can get a rate for a 30 year mortgage of under 6%, with no PMI at 10% down... but I need to wait on it, as the lock is only 30 days.
Ill admit, Im not sure if thats a 30 day lock in business or calendar days, but Ill assume it is calendar days.
So, my issue is whether I should lock in my rate wth Navy Federal now, and pay a 1/8 point penalty (and potentially a 0.25% rate increase) to lock in my rate for 60 days, or if I should just stall all m y paperwork, and immediately request the extra 7 days.
I want to maintain the best deal possible, but do I chance it, put off applying, and save 1/8 point and come in closer to the due date, or just put in the application now, get the good rate, pay the 1/8 point and be locked in with all systems go?
Where do you forsee interest rates going over the next month?
Thanks!
JMH
