Author Topic: How to make sure I lock the bottom of the rate dip?  (Read 1139 times)

caleb

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How to make sure I lock the bottom of the rate dip?
« on: March 06, 2020, 03:55:48 PM »
I locked a rate with my current mortgage lender a week ago.  Since then, average rates have fallen between an eighth and a quarter point. 

I asked my current lender about requoting the rate based on the fall of the last week, and I got a nonresponsive answer about how rates will rise so I should act now.

What I'd like to do is keep requoting and locking the rate periodically as they go lower, and only finish the application after they rise again.  I also realize that the bank probably doesn't want to do it that way.

Any tips on following the rates down to make sure my refinance ends up locked at the bottom?

Sibley

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #1 on: March 06, 2020, 06:06:11 PM »
Get a crystal ball?

Seriously, no one can predict the future. This is essentially timing the market. It really doesn't work.

Mr. Green

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #2 on: March 06, 2020, 06:38:53 PM »
A lender is not going to allow you to do this. Once you start the process they're going to expect you to complete it or expect them to walk away from you as a client.

caleb

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #3 on: March 07, 2020, 01:38:12 PM »
A lender is not going to allow you to do this. Once you start the process they're going to expect you to complete it or expect them to walk away from you as a client.

So... it sounds like the only way to do it is start a new application with a different lender each time the rate drops?

I realize this is jerking them around a bit, but it's also built into the price.

MishMash

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #4 on: March 07, 2020, 02:57:43 PM »
Most lenders will allow you to lock in a lower rate once in the origination if it's .25 or more.  None of them will allow you to do what you want. And starting new applications while you have already "locked" the rate and started the loan process can hit you with fees from the prior lender. 

norajean

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #5 on: March 07, 2020, 05:53:02 PM »
If rates trend down slowly for 15 months are you going to lock and then start over with a new lender every few weeks for more than a year?  How will you know when rates are at the bottom and not just on a temporary uptick before a new plunge?

caleb

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #6 on: March 08, 2020, 09:35:48 AM »
If rates trend down slowly for 15 months are you going to lock and then start over with a new lender every few weeks for more than a year?  How will you know when rates are at the bottom and not just on a temporary uptick before a new plunge?

I'm thinking much more about over the closing period.  If I start complete the refinance I started in a month, I'm going to feel a bit like a sucker if I close at rates significantly higher than are offered when I close.

@MishMash At this point, I haven't signed anything with anyone.  I'm not sure how anyone can charge me a fee for deciding to keep shopping.

Alternatepriorities

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #7 on: March 09, 2020, 12:50:40 AM »
Seems to me that you’d end up with a lot of hard pulls on your credit score which would eventually lower your score enough that you might not qualify for the lowest rate anymore?

Dicey

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Re: How to make sure I lock the bottom of the rate dip?
« Reply #8 on: March 09, 2020, 02:24:47 AM »
Get a crystal ball?

Seriously, no one can predict the future. This is essentially timing the market. It really doesn't work.
Thanks for writing the out answer for me, too @ Sibley! Ii have one somewhere, but I just cant seem to remember where I put it, lol.