How To Get The Best Possible Mortgage Rate
The answer to this question is easy, APPLY-APPLY-APPLY
And don’t lock in at application !
Don't wait untill the rate you want is available to apply -make it available!
The reason I suggest this is simple, due to the mess congress has put the mortgage business in with recent laws such as the HVCC and the MDIA are killing loan processing times. Lenders are being forced to use 60 day rate locks to ensure they can complete the loan process before the rate lock expires. Mortgage rate lock periods offer different pricing for different lock terms. For instance a 60 day lock which most companies are currently offering cost much more than a 15 day lock. Often as much as .250% in rate. To make it simple if the pricing on a 60 day lock is 5.375% at application the 15 day rate would often be as low as 5.125% for the same loan saving the borrower thousands in interest over the life of the loan.
Rates move up and down in cycles much like a roller coaster. You don’t want to lock in at the high point in the ride you want to hit the bottom in the cycle to lock in. Floating the rate at application gives you the best chance to archive this as well as getting the cheapest lock in price. Don’t worry about missing a low rate as I stated rates move in cycles often hitting bottom 2 or 3 times during the cycle. Bottom line is give your loan officer time to get your loan approved and cleared to close before considering locking in so you can use a 15 day rate lock to get the lowest possible rate.
Another reason to float your rate at application is with the impletation of the HVCC a lender now owns your appraisal and will not release it to another lender should rates drop. So if you locked in at application and three weeks into the process rates drop you are stuck with the higher rate. The lender will not lower your rate and will not release your appraisal that you paid for leaving you with the choice of accepting the higher rate or paying $385.00 on average for another apppraisal to have your loan officer move your loan to another lender with the lower rate. Floating your rate at application gives you the options.