Hang on to the free option
by OrangeJubilee (2019-07-16 16:29:41)

In reply to: Question re interest rate pricing and loan refinancing  posted by tdiddy07

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in 15 days (or so) you can move forward with the current application (assuming it is really a locked in rate) or with a new application at a different rate. Decide then.

However the cut is already priced in 60-80% in the futures, so I bet you won't see much movement if any if it is a fixed rate offer. If floating, what is the rate benchmarked to? That could move some, but even then maybe not.

However if there is no cost to holding that rate lock for a bit, then do it, it cannot hurt you and has a potential benefit (market rates could rise if they don't cut.)

You want a TV, you can pay $600 today, or whatever the price is in two weeks, but you get to pick which price. You'd always choose the option to see what that price is in two weeks if no cost.

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