Be Prudent, Not Proud… Lock In.

Compete With Your Current Rate, Not Your Buddy…

Below is a piece written on Facebook by a friend of mine, who’s a lender at Wachovia. He pretty much hits what I’ve been telling people all week, right on the head.

I’ve been telling people all week that they need to call their lender and “lock in.” Even if you don’t refinance or buy a house, at least lock in (because rates are in the 4%’s for Pete sakes) and evaluate what’s best for you after you study your situation. I’ve learned from my lender friends that if you have the opportunity to reduce your rate about 2%, then you need to look hard into refinancing your mortgage.

Oddly, interest rates have become a competition among our friends. You shouldn’t look at it like this. Just because someone has a rate .o2% better than you, don’t feel like a loser. If it saves you money, you’re the winner either way. Don’t act like a Day Trader and obsess about it every hour, so you can beat your friends rate. This is not the goal. The goal is for you to save money every month, or over time.

As you shop, remember too that you probably won’t be in your house for 30 years. You have to inject this into your cost/benefit analysis.

Email or text me if you need a list of lenders. I have a great group of lender partners that can help you.

Read below. It’s good advice… FJ

From Nathan Ballentine:
Many of you have called for advice and I figured for everyone that’s called there may be several sitting at home unaware of what they can do right now to help them and their family in these uncertain times.

What’s amazing is that some folks are now “upset” that they can “ONLY” get 4.875%! Worse yet, some folks are even breaking locks and leaving lenders high-and-dry because they can get .125% lower at another lender because rates moved lower after they locked. Don’t get me started on that.

If you’re sitting on 6% fixed or higher, give a lender a call. If you have an Adjustable Rate Mortgage, give a lender a call. Sure, you can call me – it’s my paying job at Wachovia Mortgage. If you don’t call me, call SOMEONE.

Today alone, here’s what some folks DID (and are doing at several places across the country):
(a) saving $100 – $300 a month
(b) dropping their rate but sending in the same payment and paying off loan 7 years earlier
(c) paying no money out of their pocket (rolling costs into new loan)

My advice:
1. Know approximate balance of what you owe, what your home is worth, and your credit score.
2. Be patient for a return call from your lender.
3. Have in mind “the rate” you want or “the payment savings” you want…and take action when you get that figure.
4. Don’t spend all day shopping around. Every lender is busy and rates change frequently throughout the day. While you’re shopping for that extra .125%, rates may go up.
5. Forget about it after you lock. Sure, rates may drop lower than your lock but my gosh…don’t let a bird in the hand get away while you sit around waiting for two in the bush

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