October 27th, 2010 8:44 AM by Eric Fang
I know this subject is weird but it's true.
I heard from lots of people that the rate is going lower after their lock. And I told them that you should be happy that way.
Everybody should have the same experience when the rate trend is lower. After the rate lock, and you findthe martket rate is lower, that means trend is lower.You should be happy that you can get lower rate in the future.
Let's assume that you locked the rate 3.5% for 5/1ARM.Lots of people will feel happy that they lock the rateat the lowest level. Since it's the "lowest", you can notget lower rate again.
How about another scenario? you locked the rate 3.5%for 5/1ARM and you did not get the lowest rate and the rateis going lower. So it will be very likely that you will get lower rate in the future.
Which scenario do you like better?