Wednesday, August 3, 2011

Rate Question...HELP!

We are feeling clueless on the whole locking in on our interest rate thing.  I contacted our NVR Rep today and he let us know that the rate for today on a 60 day lock is 4.25% - cost .375%.  What does this even mean?  4.25% sounds appealing to me, but is there somebody on here that can help me with this a little more?  I'm assuming that tomorrow's rates may be around the least I'm hoping because it's 4:30PM right now, and I could probably only lock this in until 5PM.  HELP!  PLEASE!

Thank you!!


  1. They are basically saying that if you want to lock in the rate for 60 days, it will cost you .375% extra. As I understand it, you pay a fee up front (in cash). So if your mortgage is going to be $200,000, you need to come up with $750 dollars (0.375% of $200K). On the NVR Mortgage website, it says that there is usually no fee for locking in for 45-60 days, so you may want to check that with your loan officer. You can learn about lock-ins on this Federal Reserve web page.

  2. I have NO idea! But a 4.25% rate is awesome!

  3. Thank you so much SCJ! That makes a lot of sense. That rate just sounded so appealing to me that I wanted to know the info right away! I understand it now, and I'm waiting for our loan officer to get back to us with today's rates. Keeping my fingers crossed that they are just as good as yesterdays...

    Noey - I know, right?! I'm just not in love with the idea of the "cost", especially since SCJ showed what NVR's website says about there usually not being a fee for locking 45-60 days out. We'll see! The house is gorgeous!! Hope you are very happy!