Timing the 10 year for mortgage lock
Timing the 10 year for mortgage lock
Bernake speaks tomorrow. Rates are at a 2 year high. Could he possibly say anything that might send the 10 year higher? It seems to me he'd like to be more of a dove. I ask because I need to lock in a mortgage rate within 30 days
Re: Timing the 10 year for mortgage lock
Your lender is eagerly anticipating this speech too. In fact, they're probably paying Thomson-Reuters for a 2 second head start (Google it)
I'd say the chances of you outmaneuvering the professional MBS investors are probably nil. And I say this having done just that, by pure luck...
I'd say the chances of you outmaneuvering the professional MBS investors are probably nil. And I say this having done just that, by pure luck...
- TomatoTomahto
- Posts: 17158
- Joined: Mon Apr 11, 2011 1:48 pm
Re: Timing the 10 year for mortgage lock
IF you could time this, it would be sad to waste it on a mortgage lockin.
I get the FI part but not the RE part of FIRE.
Re: Timing the 10 year for mortgage lock
I'd look at this behaviorally. How would you feel about each of the following:
1. You lock the rate now, only to see rates drop 50 bp tomorrow.
2. You wait to lock, rates rise 50 bp and don't come back down within 30 days.
Therein lies your answer. (If you'd feel equal amounts of regret in either scenario, then I recommend you flip a coin).
1. You lock the rate now, only to see rates drop 50 bp tomorrow.
2. You wait to lock, rates rise 50 bp and don't come back down within 30 days.
Therein lies your answer. (If you'd feel equal amounts of regret in either scenario, then I recommend you flip a coin).
Don't assume I know what I'm talking about.
Re: Timing the 10 year for mortgage lock
Well said G-Money. I'm willing to gamble I think
Im expecting the Bernake we got a couple weeks ago when he had to make unscheduled commentary to calm the bond selloff.
Im expecting the Bernake we got a couple weeks ago when he had to make unscheduled commentary to calm the bond selloff.
Re: Timing the 10 year for mortgage lock
Why wouldn't you lock with a float down option?
Re: Timing the 10 year for mortgage lock
Don't know about the OP, but those options don't always exist (for a particular lender). It didn't exist for us.
Retirement investing is a marathon.
Re: Timing the 10 year for mortgage lock
I've asked that of the 4 lenders i've inquired with. None of them offer float down. Just float. I didn't lock in today, so I will probably just let it float for as long as I can.