LOCKING INTEREST RATES

I was home this morning and the news was on what was happening in Greece and the direct affect it was causing on our stock market. I watched the Dow Jones drop almost 1000 pts or 10% of its starting value and then reclaim almost 500 pts.

People are worrying how Greece and especially the riots that are occurring there and about what Greece is planning do, will affect not only them but especially several of the other European countries.

A commentator for Fox News said that our glorious state of California could find itself in the same position as Greece because it too is bankrupt and the state has many groups that get hand outs that could find their monies being cut drastically since all of their monies come from the state coffers.

But I digress!

Locking Loans is a term used in the mortgage business that allows you at some point to lock your interest rate if you feel it is going to climb any. Your mortgage broker is only required to ask you once and then it is up to you to accept his experience and lock or to take your chances and see if the interest rate drops or climbs before you call him back to lock.

My friend in the mortgage business has advised that if it is possible to lock interest rates before tomorrow when the unemployment numbers come out. From his sources he thinks its going to be bad. He locked three of his this morning. He thinks mortgage interest rates are going to skyrocket again. Maybe with a slow burn fuel...but skyrocket none the less.