Predicting the Future
Predicting the future when it comes to interest rates is virtually impossible because the market fluctuates daily and many variables factor into market movement. But borrowers want the lowest possible interest rate on a mortgage so to some, it makes sense to hold off locking in an interest rate in hopes of getting the ultimate deal.
The monthly savings on a $150,000 loan amount at 4.75% and 4.5% for 30 years is $22.44, and while that may sound insignificant up front, the difference for the whole 30 years of the mortgage is approximately $8,000, which is a considerable sum.
Though it is impossible to predict what will happen next week, tomorrow, or even the same day, trying to outsmart the market is gambling and carries substantial risk. It’s important to check-in with your lender several times throughout the transaction and see when they feel it is optimal to lock-in to prevent delays and any hassle further down the line.
**The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice