Mortgage Blog

It's the best time to think about which loan program you want to have, which rate you expect to have now, since the rate is at the higher end of the trading range.

I did talk to a few people about their rate expectation. Usually for most people, they expect the rate at the lower end(end of Nov rate) or even lower than the history low rates. For some cases, I do recommend not to wait. For example, for 600k loan(LTV 80%) with current rate of 5.375%, borrower wants to wait for 4.75%. I don't recommend to wait for this rate. The reason is very simple, they already save some money from 5.375% to 4.875% to 5% rate; they don't have to get 4.75%(This is an almost impossible rate). But if they have 5% now, then they can wait for any lower rates they want.

Any cases is for those who have value problems, we are not sure whether we can get 80% LTV(non-fannie, non-freddic loans) and the borrower still want to have very low rate. It's good to wait for better rate; it is borrower's best interest if they can refi and get this rate.