I am familiar with their programs and rates. I don’t know what their secondary market is for these jumbo loans or what their underwriting guidelines are.
It is very dangerous for any institution to lend long and borrow short with their own money.
Loaning out money for 30 years below 6% and paying depositors rates below that today is fine, but at some point if/when CD rates rise they will be paying more to get money than they lent it out for if they didn’t offset this risk. (Bad business)
They may use arbitrage offset with bonds or another risk strategy. They aren’t stupid.
Assuming that you qualify in all respects, have you asked them what their extended lock policy is ?
You may be able to get a 6 month lock for a fee.
This would allow you to lock this month or next if you like the current rates, if you are sure you will be ready for occupancy by June/July.
Locks are simply a market commitment at todays market price with a time premium attached. If it’s worth it to you, you may have the choice to pay for the option.
Locks cost money to a lender. Consumers dont understand this. They just want to lock and keep shopping, which isn’t fair. Just like trading stocks, you word should be your bond.
If you want to wait,then wait. If you like the rate, then lock.
I do have a policy with my major lenders if rates drop a certain amount to get a small adjustment.
I have a lender that will lock up to one year out, but only up to $417,000 loan amount. The cost is 1 point of loan amount to get todays rate a year from now. Loans from $417K-$546 are 70 days max right now.
Most people do not get their mortgages at the lowest rate. Very, very few have 30 YR fixed at 5% or below. Now many are paralyzed by greed. Now they want an even lower rate before refinancing.
