Yesterdays Roller Coaster ride for interest rates

In the hunt to locate the best interest rate for a mortgage loan many people may spend an afternoon calling or emailing local lenders or use an online service like zillow to get free quotes from many different lenders. This was the procedure recommended for years by financial professionals. But as the lending landscape has changes in the past 24 months this procedure has proven ineffective. Wednesday December 17th 2008 was the case in point.

My first notice of 30 yr fixed interest rates started at 4.625% that lasted for about 10 minutes. I was notified in minutes that locks were no longer being accepted and rate changes were coming momentarily.

As the morning progressed I took calls from customers following the time tested procedures I listed above unwilling to heed my advice and noting they would be back in touch.

Next notice was 4.75%, then 4.875 and by 1:00 pm rates were back at 5%, which was the prior days level.

By the end of the day rates were 5.125-5.25% to close the day.

When customer called back in the afternoon they were disappointed to hear the news.

In today’s banking environment locking an interest rates just like buying stock. A rate lock is a buy call and your committed good or bad. There no bell when you hit bottom so the advice of a trusted professional is worth its weight in gold. One customer’s indecisiveness cost them a savings of over $64,000 yesterday on the term of their loan.

My recommendation:

Get an application completed now.
Get me a signed document outlining your terms, desired rate, and other information.
Having a plan in place for getting your best rate can ensure it happens without suprises.

Brent Diebert
BrentDiebert@ArlingtonBank.com
Mobile 614-571-3554