Don’t ruin deals waiting for mortgage rates to drop: experts

New York /
Oct.October 18, 2013 01:05 PM

Now that the budget standoff has ended – at least for the time being – home loan borrowers shouldn’t dilly dally waiting for mortgage rates to fall, according to industry experts.

Mortgage rates, which inched upward as the federal budget deadline loomed closer, don’t show signs of falling again, according to Keith Gumbinger, an executive at financial publisher HSH.com.

“If you have a mortgage deal in place that makes your transaction work, go get it and lock it in,” Gumbinger told the New York Times. “No one can be certain what will happen in the future.”

Locking in an interest rate on a loan ensures that it will not change, regardless of market conditions, as long as the borrower closes on the loan within a predetermined lock-in period, according to the newspaper.

To be sure, lenders won’t commit to a rate lock until a borrower has a home under contract or has a signed offer, John Adam, a home loan sales executive at Bank of America told the Times. But a borrower should go ahead and get prequalified for a loan in the meantime so that they can quickly address issues down the road. [NYT]Hiten Samtani


Related Articles

arrow_forward_ios
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
Lenders are being stingy about granting home equity lines of credit. (iStock)
Home values are up, but just try getting a line of credit
Home values are up, but just try getting a line of credit
(Getty)
Mortgage applications resume decline after one-week surge
Mortgage applications resume decline after one-week surge
Signature Bank CEO Joseph DePaolo (Getty, Google Maps, iStock)
Signs of success, trouble for property lender Signature Bank
Signs of success, trouble for property lender Signature Bank
Hispanics account for more than half of U.S. homeownership growth in the past decade despite making up only 18 percent of the population. (iStock)
Buenas noticias: Hispanic homeownership soars
Buenas noticias: Hispanic homeownership soars
Refinances made up 60 percent of all applications, up slightly from 59.2 percent the previous week. (iStock)
Mortgage rates dip, triggering surge in loan requests
Mortgage rates dip, triggering surge in loan requests
Freddie Mac’s economists said the slowdown will be caused by a hike in mortgage rates and limits on housing supply. (iStock)
Fannie, Freddie say housing market could see slight hiccup
Fannie, Freddie say housing market could see slight hiccup
G&M Realty's David Wolkoff (Getty, 5Pointz LIC)
Wolkoff’s $300M for 5Pointz tops outer-borough loan list
Wolkoff’s $300M for 5Pointz tops outer-borough loan list
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...