Popping and Locking is a form of street dancing combining a combination of various movements and poses. Popping is quickly contracting and relaxing muscles to cause a jerk in a dancer’s body. Locking compliments the popping by following the fast body movements and locking in a certain positions.
How do San Mateo mortgage markets relate to this form of dancing? As we all know, the mortgage markets are in flux. San Mateo mortgage interest rates are the masters of popping. They can move up or down two to three times a day or, in dancing terms, quickly contracting and relaxing causing a jerk in your San Mateo mortgage process.
During the mortgage process, you must decide whether to lock in your rate or let your rate float after you have an accepted contract on a San Mateo home. Floating your rate plays into the volatility of the market or the popping of the market. Floating can add stress of the already daunting San Mateo home buying process. Even though you have decided which San Mateo mortgage loan program meets your long and short term needs, you still have the uncertainty of your interest rate until you lock the rate. Some people are willing to take the gamble as they are waiting for interest rates to fall, but with any gamble you have to weigh your risk. Because the mortgage markets are volatile and rising San Mateo mortgage interest rates can potentially disqualify you as an approved borrower you run the risk of losing your financing altogether. If the rate were to jump up several points, you may not qualify for the same program you are currently considering.
As a mortgage advisor my job is not to gamble with your money. As a break dancer (only in my dreams), I recommend less popping more locking. Locking your rate is a safe, but smart play. Once you have an accepted contract and you lock a San Mateo mortgage interest rate that is acceptable to you, it doesn’t matter where rates move. First of all, you have alleviated the mind games you create for yourself that comes with floating. Second, when you lock in your rate, you always come out on top. Here’s why…
There are only three things that can happen when you lock your rate. Interest rates will stay flat, interest rates will rise, or interest rates will fall.
- Rates stay flat – You win because you just saved yourself time and effort.
- Rates rise – You obviously win, as you have a below market interest rate at the time of your closing
- Rates fall – You still win because most lenders will allow you to float down your locked-in rate to a lower rate if rates drop before your closing date. Most will do this for free because they don’t want you to move your loan to another lender over fractions of a percentage point.
Deciding to err on the side of caution may not win you Dancing with the Stars but you will win when it comes to the San Mateo mortgage game. When it comes to popping and locking dancing, I am definitely not the expert you are seeking. However, when it comes protecting your interest, I will be the first to join you on the dance floor.
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
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