Nowizard wrote:Rates are dependent on your credit history, FICO score, income, amount of down payment, etc., as you know. If you qualify for the lowest rate on all accounts, the rate you mentioned is higher than seems appropriate. We have recently locked in a 3.5% rate on a 30 year loan with Iberia Bank. Not to confuse the issue, but you might call around and determine if you have the best rate since you know what tier you are being considered for by the lender.
+1 - Are you certain you are being offered a competitive rate? I know when I purchased a house the "recommended" lender (which also happened to be partially owned by the realtor to get around anti-kickback legislation) offered rates that were significantly higher than what I found through a mortgage broker. I'd suggest you check out one of the online lenders to get an idea of market rates. In my area, 30 year fixed rates are in the 3.5% - 3.625% range for highly qualified borrowers.
I would also echo the above poster who suggested locking when the financials of your deal work - you have enough going on trying to negotiate a house purchase, why take on risk and stress you don't have to. If you absolutely have to dig further, check out http://www.mortgagenewsdaily.com/
for some commentary / guesses on current and future rates and locking strategy.