Mortgage Blog

Unless if you know the market, it's easier to make
money in the stock market if you follow the trend.
Otherwise, you will lose the money.

It's the same for the mortgage rates. If we know the
rate is going down, we can follow the trend and float
the rates for some time and lock a lower rate.
And if we know the trend of the rates is going higher,
then we will lock the rate.

For the last a few months of PF loans, I think I will
have one loan might fail(except those denied loans
for whatever reasons). The rate we locked was 2.625%
for 5/1ARM with high-balance and LTV 75%. The rate
expired because of the lender/borrower slow response
and some issues related to the appraisal.

And I urged the borrower that ARM rate will go higher
and got me the last piece of documents so that we can
re-lock the same rate and close the deal.

And for some reason, I got the document three weeks later.
And it might be very hard to get the similar rate now.
And the reason is the "trend" changed and we should
follow the trend.

We did have several other loans with rate expired, and
we saved them because we worked together to get it done
at the last minute(Jeff, Micahel and Ram, am I right).
And I got the documents even when they were in India,
or on the vacation out of the states. And we all know
we have to work it together, othwerwise we will not get
those rates, because the "ARM trend" changed.