Mortgage Blog

1)I have borrowers asked me why my rates posted are different
than some agents posted?
Everyone knows that I have the lowest rate on the market. Then
why we have those questions?
Here is the reason:
when I quoted my rates(Assume for conforming loan, the posted rates
are for 400k loans; for high-balance loans, the posted rates
are for 500k to 600k loans) those are the rates I can lock for 
my clients and for some cases, if you have LTV<=60% or have impound account, you may have better rates. That means I quoted doable rates.

For some agents, they either quote the best scenario rates
which most people can not get or the rates for 15 days(you have
to float the rate at the application).

Then the main difference is you can get a rate from whatever I quoted.
For example, on Nov 30th, I locked lots of loans for 4.625% for
30 yr fixed(3.625% to 3.75% for 5yr fixed); that's the best rate
we got; but if you choose to wait for 15 day lock and get 4.5% to
4.625%, then you will have to wait for another two months or wait
forever.

2)The second question is when to lock the rate? It depends on
your sense, your understanding of the market. I alwasy recommend
to lock at the valley and float at the top when the market is
range trading; float the loan when you feel the rate is going
lower. I am glad that we can "predict" the rate trend most of the
time.

3)What should we do at the current market?
Yes, the rate went higher for the last a few days. But I still
believe the rate will range tade now, and will go a little bit
lower in Jan. How low can the rate go? Personally I think the rate
on Nov 27th, Nov 30th was the bottom. It is very hard to break
this level. Any rates close to that level is good to lock.
Here are the sample of the rates you can expect(all no closing cost):

Conforming:
15 yr fixed    4.25%
30 Yr fixed    4.625% to 4.750%
20 Yr fixed    4.500% to 4.625%
5 Yr fixed     3.625% to 3.750%

Jumbo:
30 Yr fixed    4.875% to 5.000%
5/1ARM         4.000% to 4.250%

Please email me if you have any questions.