Locking In California Mortgage Rates
Meet Dennis Anderson, senior loan consultant.
“We
will call the bank and lock the rate. It's a judgment call, based on experience,
as to when to do the lock.”
What do you do for a client when it comes to locking in rates?
We call the bank and lock the rate. We also advise the client, based upon their needs, about when to lock the rate. For some loan products, interest rates don't change very often. For other types of loan products, particularly A-paper loans (loans made to better borrowers), the rates can change every single day. We would advise the client, predicated upon when escrow is going to close, or if it's a refinance, when they should lock the rate. This is based upon our assessment of various interest rate factors that experienced mortgage folks pay attention to.
Senior Loan Consultant Dennis Anderson: There are also trends in the market. Right now, the trend is going up. And there are trends when the interest rate is going down. If the trend is going down, you may not lock the rate until further along in the loan. It's a judgment call, whether to lock in sooner or later.
Are there different kinds of mortgage rate locks? 30 day, 60 day, 90 day?
Dennis: The length of time of the lock may cost the borrower a percentage increase in the loan rate. The longer the lock, the higher the rate could possibly be. Let's say a 6.5% rate can lock in for 30 days. It could be instead 6-5/8ths for a 90-day lock.
What's a typical closing time on a purchase?
On a purchase, a typical escrow is 45 days, out to 60 days. It is important to get the proper funding within that time frame, in a timely manner.
California Mortgage Home Loan Brokers,
a Los Angeles mortgage company
Attn: Michael McKown
16027 Ventura Blvd. Suite #500
Encino, CA 91436
818-841-0051 Local
888-632-9939 Toll Free
E-mail to Michael