Mortgage Blog

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 find
the 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 rate
at the lowest level. Since it's the "lowest", you can not
get 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 rate
is going lower. So it will be very likely that you will get
lower rate in the future.

Which scenario do you like better?