Wednesday, September 24, 2008

Lock In Your Mortgage Rate

Wow, there is a lot of volatility in the markets lately! I subscribe to a service called the Mortgage Market Guide and it has been like watching a yo-yo lately. There is no trend and nothing is very predictable when it comes to mortgage bonds.

With that said, the market volatility is not the only reason to lock in your mortgage rate these days. The investors who buy the loans from mortgage companies after they get packaged up with others have varying appetites. The changes that they are making in terms of what they are interested in buying and how much they are willing to pay are leading to an ever-changing set of guidelines for mortgage lenders to follow. Because of this, lenders are only able to honor or "grandfather" loans that are locked in. Essentially, we'll commit guidelines to you if you'll commit to doing business with us by locking in.

So, when you are getting started on a loan application, consider locking your rate to protect your rate and your ability to get approved!

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