Lock the Rate or Float?

Lock in the Rate or float & watch the market?

 

Should I lock in my Rate now, or wait and watch the stock market, hoping the interest rates will go lower.

 

That’s the $64 million dollar question.

 

From my experience in the mortgage business, you should calculate your monthly mortgage payments, based on the amount you qualify for, and go ahead and lock in the rate.

 

A $200K Loan amount at 4.5% on a 30-year fixed rate, would have a monthly mortgage payment of $1,013.37, at 4.375%, it’s $998.57, 4.25%, it’s 983.88, 4.125%, it’s $969.30

 

Now, if rates went up to 4.625%, the payment is $1028.28, at 4.75%, it’s 1043.29, at 5.875%, it’s 1058.42.

 

As you can see, for every 1/8 of a point on a $200K Loan, the payment changes about $15/month.

On a $300K & $400K Loan amount, the difference is $22 & $30/month, respectively.

So, you have to ask yourself, is it worth it to play the market for $15 or $30/month?

 

Lock it in TODAY!

Lawhorn & Associates Mortgage Company

https://www.lawhornmortgagecompany.com

 

(256) 539-0555 (office)

(256) 337-3700 (cell)

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.