Help! Should I lock?

[SDEngineer]

The Fed just announced they will buy up to $300B in long term treasuries over the next 6 months. In addition, they announced they will buy another $750B in Fannie/Freddie MBS’s.

This will almost certainly push mortgage rates lower. Possibly quite a bit lower.

[(former)FormerSanDiegan]

That rate sounds like JUMBO-conforming (e.g. less than 697K).

Who is the lender

1/2 point at the max is still only a few grand. In the scheme of building a house that very tolerable (Its the same amount you would pay for a couple months extra rent during construction)

If you think the contractor will finish in time, and that it will easily appraise at 60-70% LTV. Lock it, No Brainer.

Biggest worries:
1. Are we done yet ?
If you are still 180 days from completion, it is not possible to predict a completion date with any degree of accuracy. (Well, at least that’s my experience from a grand total of one major 4-month remodel that became 8 months).

2. Appraisals. Banks are very conservative on appraisals. If you are in the 50% LTV range you have no worries. If, in your opinion the LTV is in the 70-80% range, a conservative appraisal 6 months from now could put you above 80% LTV.

[(former)FormerSanDiegan]

That rate sounds like JUMBO-conforming (e.g. less than 697K).

Who is the lender

1/2 point at the max is still only a few grand. In the scheme of building a house that very tolerable (Its the same amount you would pay for a couple months extra rent during construction)

If you think the contractor will finish in time, and that it will easily appraise at 60-70% LTV. Lock it, No Brainer.

Biggest worries:
1. Are we done yet ?
If you are still 180 days from completion, it is not possible to predict a completion date with any degree of accuracy. (Well, at least that’s my experience from a grand total of one major 4-month remodel that became 8 months).

2. Appraisals. Banks are very conservative on appraisals. If you are in the 50% LTV range you have no worries. If, in your opinion the LTV is in the 70-80% range, a conservative appraisal 6 months from now could put you above 80% LTV.

[(former)FormerSanDiegan]

That rate sounds like JUMBO-conforming (e.g. less than 697K).

Who is the lender

1/2 point at the max is still only a few grand. In the scheme of building a house that very tolerable (Its the same amount you would pay for a couple months extra rent during construction)

If you think the contractor will finish in time, and that it will easily appraise at 60-70% LTV. Lock it, No Brainer.

Biggest worries:
1. Are we done yet ?
If you are still 180 days from completion, it is not possible to predict a completion date with any degree of accuracy. (Well, at least that’s my experience from a grand total of one major 4-month remodel that became 8 months).

2. Appraisals. Banks are very conservative on appraisals. If you are in the 50% LTV range you have no worries. If, in your opinion the LTV is in the 70-80% range, a conservative appraisal 6 months from now could put you above 80% LTV.

[(former)FormerSanDiegan]

That rate sounds like JUMBO-conforming (e.g. less than 697K).

Who is the lender

1/2 point at the max is still only a few grand. In the scheme of building a house that very tolerable (Its the same amount you would pay for a couple months extra rent during construction)

If you think the contractor will finish in time, and that it will easily appraise at 60-70% LTV. Lock it, No Brainer.

Biggest worries:
1. Are we done yet ?
If you are still 180 days from completion, it is not possible to predict a completion date with any degree of accuracy. (Well, at least that’s my experience from a grand total of one major 4-month remodel that became 8 months).

2. Appraisals. Banks are very conservative on appraisals. If you are in the 50% LTV range you have no worries. If, in your opinion the LTV is in the 70-80% range, a conservative appraisal 6 months from now could put you above 80% LTV.

[(former)FormerSanDiegan]

That rate sounds like JUMBO-conforming (e.g. less than 697K).

Who is the lender

1/2 point at the max is still only a few grand. In the scheme of building a house that very tolerable (Its the same amount you would pay for a couple months extra rent during construction)

If you think the contractor will finish in time, and that it will easily appraise at 60-70% LTV. Lock it, No Brainer.

Biggest worries:
1. Are we done yet ?
If you are still 180 days from completion, it is not possible to predict a completion date with any degree of accuracy. (Well, at least that’s my experience from a grand total of one major 4-month remodel that became 8 months).

2. Appraisals. Banks are very conservative on appraisals. If you are in the 50% LTV range you have no worries. If, in your opinion the LTV is in the 70-80% range, a conservative appraisal 6 months from now could put you above 80% LTV.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[eagleeye]

Thanks for the advice. This is for a loan amount above $1M. We’re currently at 67% LTV so we’ve got a bit of a cushion and the most recent comp is above our bank apppraisal. Also there is a near identical spec house being build next door that was just listed for 5% above our appraisal. The lender is Navy Federal. I’m not going to lock anything until my builder gives me his blessing. Our construction loan is up in mid October so we’ve got to be done before that. My builder has been saying July all along so we have been planning on late August to be safe. A 180-day lock would take us to mid-September. I’m going to give it a little time in light of what the Fed did today.

[Chris Scoreboard Johnston]

After the largest single day upmove in price in history, the rates out to be a helluva lot lower tomorrow, 8 full points in 15 minutes. For those of you who do not trade what happened today is impossible to overexaggerate how big of a move that is, beyond belief. In the old days the daily maximum limit used to be 2 points and was rarely ever hit. 8 points in a year would be a great year trading bonds, 15 minutes is insane.

Lenders might be in shock and may wait to see if that sticks, they did settle down some off the highs.

[Chris Scoreboard Johnston]

After the largest single day upmove in price in history, the rates out to be a helluva lot lower tomorrow, 8 full points in 15 minutes. For those of you who do not trade what happened today is impossible to overexaggerate how big of a move that is, beyond belief. In the old days the daily maximum limit used to be 2 points and was rarely ever hit. 8 points in a year would be a great year trading bonds, 15 minutes is insane.

Lenders might be in shock and may wait to see if that sticks, they did settle down some off the highs.

[Chris Scoreboard Johnston]

After the largest single day upmove in price in history, the rates out to be a helluva lot lower tomorrow, 8 full points in 15 minutes. For those of you who do not trade what happened today is impossible to overexaggerate how big of a move that is, beyond belief. In the old days the daily maximum limit used to be 2 points and was rarely ever hit. 8 points in a year would be a great year trading bonds, 15 minutes is insane.

Lenders might be in shock and may wait to see if that sticks, they did settle down some off the highs.

[Chris Scoreboard Johnston]

After the largest single day upmove in price in history, the rates out to be a helluva lot lower tomorrow, 8 full points in 15 minutes. For those of you who do not trade what happened today is impossible to overexaggerate how big of a move that is, beyond belief. In the old days the daily maximum limit used to be 2 points and was rarely ever hit. 8 points in a year would be a great year trading bonds, 15 minutes is insane.

Lenders might be in shock and may wait to see if that sticks, they did settle down some off the highs.

[Author]

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