October 19th, 2011 2:48 PM by Eric Fang
Let's start with a story.
I used to to trade Wells Fargo stock. It's not because that I have any "insider" info. The only thing I knowis that the company is healthier, compared to any other banks, so relatively, risk is smaller.
In March, 2009, stocked was around $8.6, I did notbuy, since I thought it will go lower; then it wentback to $14, I still did not buy, because it was too high, compared to $8.6. And now you will be happy whether you bought the stock at $9 or $10 or $14.
Same for the mortgage rates. I have one person asked me for 3.125% for 15 yr fixed rates. I told him that I did not have that rates so far in history for no closing cost at all. Are you sure to wait for this rate?What if you will never get this rate? So the strategy is more important.
Then what's the best rate? Like as I said before, that'slowest rate you locked and closed.