Should i lock in my interest rate for a house now at 5.5 percent and pay $600.00 penality if the rate rises over that, i would like to know what you think the interest rate may do in the next 45 days untill my escrow closes Thankxx
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Tiptop Server
I would say go for the 5.5 percent rates as the interest rates are rising according to the experts. The $600 penalty is much cheaper to pay in the long run than a higher rate.
Good luck and best wishes,
Tip
Yesterday's gone and Today is going fast, Tomorrow is all we have, Until it to has passed
Lock in now! That $600.00 is peanuts compared to what you will pay in interest for a variable rate even if it only goes up 1%. for the next 20 to 30 years. Interest rates are the lowest they have been in over 40 years, don't hesitate.
Open the pod bay doors HAL
In 1966 the FHA/VA rates went from 6 to 6.5%. At 5.5% you are borrowing money at pre-1966 rates. Assume 5.5% is behind door #1 and you don't know what's behind doors 2 and 3 and take door #1. During Jimmy Carter's time, I bought a house at 14.25% and it went up from there. My advice, don't take that chance.
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