4 ms·

Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates ev

Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates even for 60 days.

adoxyz 4y ago
Same. I think the days of 2+ month locks are over. I've talked to half a dozen lenders since the new year and the longest lock they'd give without massive upfront fees was 60 days.
- iskander 4y ago
  I got a 3 month lock from Chase this past October but it might be that things have changed since then.
- pempem 4y ago
  Got 90 days from NASB - worth checking out.
- pc86 4y ago
  We got a 90 day from Chase in February for nothing, all we had to do was ask for 90 instead of the 60 they wanted to give us, and after about 10 seconds of typing he said that was fine. I think we're a far cry away from "the days of 60+ day rate locks are over"
  - adoxyz 4y ago
    Interesting. I didn't talk to Chase specifically, because even as one of their better customers, the rate they offered was at least 0.5% higher than every other place, so I didn't even bother.
davio 4y ago
Kind of funny that 60 days is too long for a product that lasts 30 years. My guess is local banks and credit unions are the most likely source. They keep the loans on their portfolio instead of selling them like the mortgage companies.
- ak217 4y ago
  A 200 day lock is a call option on a loan, the price of the option changes all the time. What you're saying is that local banks/CUs would offer such an option for free. Someone has to pay for the option - in the scenario you describe, the bank/CU would pay for it by losing liquidity of its assets, then having to mark them down. Rate locks are backed by rate swaps. The cost of purchasing a rate swap ultimately comes out of your pocket in the form of additional rate on the loan (the lender can add overhead of course). The cost of rate swaps has doubled in the past 3 months and quadrupled in the past 18 months. I believe it's currently around 3% on 10 year loans, so a 60 day lock on a $500K 10Y mortgage would cost about $2500 while a 200 day lock would cost over $8000.
  - pc86 4y ago
    Who the hell is buying 10Y mortgages?
    - ak217 4y ago
      Feel free to add an extra percentage point for a 10Y/30Y swap. One interesting hypothesis is that the focus on fixed-rate 30Y mortgages is fundamentally destabilizing for the US and world economy, because the stability and optionality of 30Y mortgages is paid for by added volatility of the 10Y debt market through those same swaps. Per this theory, US 30Y fixed-rate mortgages are effectively subsidized by the rest of the world. https://byrnehobart.medium.com/the-30-year-mortgage-is-an-intrinsically-toxic-product-200c901746a https://byrnehobart.medium.com/the-30-year-mortgage-is-an-in...
      - kelnos 4y ago
        Seems like most folks can barely avoid the monthly payment on a 30Y fixed; wouldn't 10Y being the norm just cause a lot of people to be unable to buy at all?
        ak217 4y ago
        I don't know. The question is whether subsidizing 30Y mortgages (fannie mae/freddie mac/FHA/QE/standard terms enforced by law to enable refinancing, etc.) is the right policy in an open system where it has many major side effects, compared to other ways to adjust housing policy. For reference, Canada has no 30Y fixed mortgages - instead they have 5-10Y fixed terms and distinguish between prepayment for refinancing (exploiting the rate environment) vs. moving (the mortgage can be rolled into the new property). As a policy, this seems less likely to have destabilizing effects than what happens in the US (concentrating volatility by loading up the banks' balance sheets with trillions of refinanced debt at times of low interest rates for folks who happened to have the means and cash flow to refinance at the right time).
bdcravens 4y ago
Not 200 days, but was able to get a 180 day lock in February. Of course, that was before the rates shot up, so my current rate is probably better than those with far better credit can get, just a couple of months later.

Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates even for 60 days.

adoxyz 4y ago

Same. I think the days of 2+ month locks are over. I've talked to half a dozen lenders since the new year and the longest lock they'd give without massive upfront fees was 60 days.

iskander 4y ago
I got a 3 month lock from Chase this past October but it might be that things have changed since then.
pempem 4y ago
Got 90 days from NASB - worth checking out.
pc86 4y ago
We got a 90 day from Chase in February for nothing, all we had to do was ask for 90 instead of the 60 they wanted to give us, and after about 10 seconds of typing he said that was fine. I think we're a far cry away from "the days of 60+ day rate locks are over"
- adoxyz 4y ago
  Interesting. I didn't talk to Chase specifically, because even as one of their better customers, the rate they offered was at least 0.5% higher than every other place, so I didn't even bother.

davio 4y ago

Kind of funny that 60 days is too long for a product that lasts 30 years. My guess is local banks and credit unions are the most likely source. They keep the loans on their portfolio instead of selling them like the mortgage companies.

ak217 4y ago
A 200 day lock is a call option on a loan, the price of the option changes all the time. What you're saying is that local banks/CUs would offer such an option for free. Someone has to pay for the option - in the scenario you describe, the bank/CU would pay for it by losing liquidity of its assets, then having to mark them down. Rate locks are backed by rate swaps. The cost of purchasing a rate swap ultimately comes out of your pocket in the form of additional rate on the loan (the lender can add overhead of course). The cost of rate swaps has doubled in the past 3 months and quadrupled in the past 18 months. I believe it's currently around 3% on 10 year loans, so a 60 day lock on a $500K 10Y mortgage would cost about $2500 while a 200 day lock would cost over $8000.
- pc86 4y ago
  Who the hell is buying 10Y mortgages?
  - ak217 4y ago
    Feel free to add an extra percentage point for a 10Y/30Y swap. One interesting hypothesis is that the focus on fixed-rate 30Y mortgages is fundamentally destabilizing for the US and world economy, because the stability and optionality of 30Y mortgages is paid for by added volatility of the 10Y debt market through those same swaps. Per this theory, US 30Y fixed-rate mortgages are effectively subsidized by the rest of the world. https://byrnehobart.medium.com/the-30-year-mortgage-is-an-intrinsically-toxic-product-200c901746a https://byrnehobart.medium.com/the-30-year-mortgage-is-an-in...
    - kelnos 4y ago
      Seems like most folks can barely avoid the monthly payment on a 30Y fixed; wouldn't 10Y being the norm just cause a lot of people to be unable to buy at all?
      - ak217 4y ago
        I don't know. The question is whether subsidizing 30Y mortgages (fannie mae/freddie mac/FHA/QE/standard terms enforced by law to enable refinancing, etc.) is the right policy in an open system where it has many major side effects, compared to other ways to adjust housing policy. For reference, Canada has no 30Y fixed mortgages - instead they have 5-10Y fixed terms and distinguish between prepayment for refinancing (exploiting the rate environment) vs. moving (the mortgage can be rolled into the new property). As a policy, this seems less likely to have destabilizing effects than what happens in the US (concentrating volatility by loading up the banks' balance sheets with trillions of refinanced debt at times of low interest rates for folks who happened to have the means and cash flow to refinance at the right time).

bdcravens 4y ago

Not 200 days, but was able to get a 180 day lock in February. Of course, that was before the rates shot up, so my current rate is probably better than those with far better credit can get, just a couple of months later.