Monday, August 8, 2011

Rates

Well we locked in ! 4.25% we are due to close on 10/7 so we are 60 days out to the day ,it was a roll of the dice a little because if we don't close by 10/7 we would have to pay a .25 % point to extend so if there are any delays it will cost us that .25 point. Our pm is great so I know he will get us done . So why didn't we wait a couple weeks to play it safe you ask ? ... Well #1 with all the bs going on with the country's aaa credit score rating and the stock market going crazy we wanted that 4.25 and it may go up to 4.5 or higher . #2 we get 1.375 discount point !!!! What does that mean ( because I didn't know until today ) is Nvr gives you 1.375% towards your loan for closing , it goes up and down from day to day the discount point so now at 1.375 it's the highest it's been in awhile so if we do have to extend the .25 for the extension will just come off the 1.375 so that's why we locked in worst case we lose that 1/4 point for closing best case we close on time and good to go. But what if we waited rate went to 4.5 and discount point dropped to 3/4 then we lose out so this seemed like best bet !!!! Now we can relax

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