November 11th, 2011 8:49 AM by Eric Fang
First, Bond not traded today because of the Veteran Holiday.So the rates will be the same as yesterday for all the lenders.
For some borrowers, some loan programs, I will float the loansso that we can lock the rate for shorter period of time in orderto get better rates. But this is not for all programs.
The only benefit for this strategy is that we can lockfor shorter period. But the disadvantage is that we haveto sitck with this lender. If another lender has betterrates, then we will have to do another appraisal to switch.
But this is one of the strategy We will use for the next a few months for my clients, as long as I can get better rates for you.
This strategy is based on teh assumption that the ratewill be in the trading range in the certain period oftime.
Have a good weekend.