Ask Kyle: Vashon Island Home Finance – Locking versus Floating
December 11, 2008 at 11:39 pm Leave a comment
I’ve been receiving questions on whether I suggest locking in or floating interest rates. We’re currently in a lending environment where rates are changing two or three times a day. With such volatility and rates as low as they currently are, it is a great time to be locking in. Nobody can consistently predict short term interest rate movement, and the risk is not worth the reward.
I’m advising my clients to lock their loans as there is a lot of comfort knowing that their interest rate is secured. A slight price improvement isn’t worth the risk of having rates move the opposite direction. Loans are taking longer to process and close due to tighter guidelines and higher loan volume. A standard lock period is 25-30 days depending on the lender. It may make sense to request a 45 to 60 day lock; this will give your lender a realistic time frame to successfully close your loan.
Give me a call to see how you can take advantage of these low interest rates. It’s a great time to be securing a fixed loan at near all time low rates.
Fax: 480.287.8704
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Entry filed under: Ask Kyle - Our Mortgage Expert, • Real Estate. Tags: Ask Kyle, Kyle Bailey, Seattle home finance, Seattle mortgage, Vashon home finance, Vashon mortgage.
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