"Floating" Away

The "market" is as crazy (volatile) as we've ever seen it. There is no real predictable model to forecast or predict mortgage rates. Actions by the Fed get counter-acted by the market, Adjustable rates go down, cost of money goes down yet mortgage rates (fixed) keep creeping up. One thing we do know is What We Have Today. If today's rate seems sensible and secure then go ahead and have me lock in your rate today. If we think that there will be an opportunity for rates to improve in the short term, then we "FLOAT" the loan: We get it processed, we have it totally approved and then when we agree that the market timing is "right," we move the loan from FLOATING to LOCKED and secure the best rate (better than "today's quote.") One reason to do this is with a seven or fifteen day guarantee to close the loan, the bank rate can be far better than if we were looking at rates of "the day" which require a 30 to 45 day locking period to get them done. If this is still confusing, please call me. In the meantime, let's get the loans moving. Your referrals are appreciated. Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/