Mortgage Blog

I got a very good question from a prospect today. For some reasons, he knows that I will submit the loan to the same lender as another agent, and he asked whether the rate from us would be the same.

I told him the answer would be yes and no. If we lock the rate the same day, most likely the rate will be the same. But because of our experience and the knowledge about the bonds and the market, the timing of the rate lock strategy would be different. For the my clients, I asked 4 borrowers to prepare the docs and application for 7/1 ARM jumbo for the rate of 2.875% with lender's paying all the closing cost. Since we prepared earlier and I think yesterday(Tuesday Oct 27th) would be a good rate to lock the rate, and they all got the good rate, and indeed the rate went up a little bit today. And on the other hand, I do not know how the other agent thinking about the market, this prospect's loan was still floating, and they target the rate of 3% for 7/1 ARM.