Monday, July 25, 2011

Locked In @ 4.75%

We locked our rate today at 4.75%, with 1% origination fee and .05% discount.  Don't ask me what it all means, but basically, the "origination fee" is their mortgage brokerage fee, with fancy terminology.  For our mortgage, it will cost several thousand dollars.  We could have bought a lower rate (4.65) and paid some points, but calculating it over the long run, I'd rather have the cash in hand now so we can get some furniture, or a deck, or a garage door opener.

We are a little close for locking in, but with the debt ceiling debate/hostage situation in DC we were really anxious about what rates might do under the various scenarios that could happen: no debt ceiling increase (super bad for rates); short term extension in debt ceiling (uncertain markets make bad rates); or an actual, honest to god agreement (which will probably happen now, and rates will plummet back down to 4.25 or 2.5). 

I'm happy with 4.75 but we are still taking a chance.  60 days from now is Sept 23.  BF talked to both our sales rep and PM today about it.  Our originally scheduled completion date was August 30, but PM changed it to Sept 15.  He is still telling us that it will be the first or second week of September.  But, if there are any major delays, we could run out of time on our 60 day lock.  So, its a little anxiety inducing.  However, I think we will have a little more control over the house and our PM than we do of Congress.  Maybe a lot, come to think about it...

So, cross your fingers for me that all goes smoothly over the next 60 days, and that I don't want to cry when rates actually end up dropping in two weeks!


  1. 4.75 is a GREAT rate...Congrats!! My sisters first house 20 years ago was at 18%!!! I was hoping to have locked in by now but alas we have yet to break ground. Hopefully they get it solved and we aren't looking at 10% rate over night :( Bye Bye dream house.

  2. Congrats! 4.75% is a great rate! I have my fingers crosed that the house is completed by the first week of Sept!