Should I lock in my interest rate or wait?

Q: Interest rates are on the rise for home loans (30 yr FHA), but we have the option to wait to lock, will the rates continue to climb? should we lock now at 4.875% or wait until Jan? We're scheduled to close Feb 28, 2011.

A: Rates increased at the end of 2010 but have mostly stabilized. In general, we suggest that you lock in your interest rate when it is at a level which makes your deal work, rather than trying to time any bottom or dip in rates. To follow rates, read HSH.com's weekly MarketTrends, Two-Month Forecasts for rates or even our latest yearlong Outlook (links present in the 'recommended reading' section below)

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: How many times can I use my VA home loan?
OCT 31, 2019
A:

There are three ways you can restore your VA eligibility so that you can take advantage of it more than once.

Read More
Q: Can my lender ask me why I'm buying a specific home?
NOV 06, 2018
A:

Lenders can ask you why you are buying a specific home because there are different lending rules for different types of properties.

Read More
Q: Does the VA allow "asset depletion" mortgages?
SEP 20, 2018
A:

Can you use private-sector retirement income and savings to help qualify for a VA-backed mortgage?

Read More