Mortgage rates over the last year have been historically low. Amazingly
low. The good news for borrowers during the last year was that the 30
year fixed rate hit a low of 4.5% on four separate occasions. It even went
down to 4.375% one time.
The bad news was that each time the rate hit the low mark it only lasted
five or six hours before the lenders repriced at a higher interest rate.
So how do astute borrowers manage to catch that rate at just the right
moment? They take a ride on the float boat.
They put in an application and register the loan, but instead of locking
the rate…they float the rate. Then they have their appraisal done, send
in all of the required supporting documents and get the loan fully approved
and cleared to close. Then they wait. When the rate falls they are ready
to go. Then they lock the rate.
Have you ever wondered why loan officers aren’t calling when the rates
are at their lowest? It is because the loan officers are busy locking the
rates for customers who have floated. It’s that simple.
If you want the best rate…take a ride on the float boat!
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon
Financial. Terry can be reached toll free @ (877) 627-9211 x150 or
email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
