Mortgage and Financial guru's please step in!

[RxCritical]

10 days ago I applied for a VA interest rate reduction loan with Navy Federal Credit Union. The rate I applied for was 3.375 with a .625% discount points. The only up front charge was $11.00 for the credit rating. At this point I have most but not all the paperwork in to them. So surfing the web at work today I noticed that NFCU had changed their rates to 3.25 and reduced the discount points to .25%. This change would be about $25-30 a month for me. But since I had locked my rate my only options are going ahead and taking the rate I locked in or withdrawing my application and reapplying in 30 days (with NFCU). I would only be out my $11 credit pull fee.

What is the likelyhood of the interest rate jumping back up in 30 days?
I'm inclined to withdraw the loan application and take my chances.
Opinions??

[snide]

My understanding of "rate lock" was that it was to protect you from rising rates, but that you could get a lower rate, if indeed the rates went lower before closing. However, that might not be the case for your situation.

[RxCritical]

Originally Posted by snide

My understanding of "rate lock" was that it was to protect you from rising rates, but that you could get a lower rate, if indeed the rates went lower before closing. However, that might not be the case for your situation.

Yes I already asked my loan processor. They won't do anything except me continue or withdraw my application.

[snide]

Originally Posted by RxCritical

Yes I already asked my loan processor. They won't do anything except me continue or withdraw my application.

That sucks. I can't see rates rising quickly in the next few weeks though...

That said, they'll likely rise about 6 points before the end of November, when my ARM is set to adjust...

[Fastguy]

The rates change daily, who knows where they will be in 3 days never mind 30. There are no closing costs other than the .625% fee?

[bsmith]

Originally Posted by Fastguy

The rates change daily, who knows where they will be in 3 days never mind 30.

They have been going up and down for months.
1/8 of a point one way or the other shouldn't be a deal breaker.

[RxCritical]

Originally Posted by Fastguy

The rates change daily, who knows where they will be in 3 days never mind 30. There are no closing costs other than the .625% fee?

There is a 1% Origination fee and the other normal closing type fees.

[RxCritical]

Originally Posted by bsmith

They have been going up and down for months.
1/8 of a point one way or the other shouldn't be a deal breaker.

Well it's not just the 1/8 of a point it's the .625% to .25% change in the discount points. That's over $1000 right there.
I've been watching NFCU rates regularly and they don't fluctuate that often. Lately anyway.

[Fastguy]

So, you have a 1% origination fee, a .625% fee, and closing costs? That sounds expensive for an IRRL.

[RxCritical]

Originally Posted by Fastguy

So, you have a 1% origination fee, a .625% fee, and closing costs? That sounds expensive for an IRRL.

It might be, but it seemed to line up somewhat with other offers. Especially when you look at the rate.
Maybe I haven't looked around enough.

[bsmith]

Originally Posted by RxCritical

Well it's not just the 1/8 of a point it's the .625% to .25% change in the discount points. That's over $1000 right there.
I've been watching NFCU rates regularly and they don't fluctuate that often. Lately anyway.

Understood.
But is 3/8 point up front worth it if the rate jumps 1/8 or 1/4 point?

[Fastguy]

When I write IRRL loans, I typically try to structure it with no costs since the recapture to save up what you added to the loan can take a while, but the rate is higher.

[RxCritical]

Originally Posted by bsmith

Understood.
But is 3/8 point up front worth it if the rate jumps 1/8 or 1/4 point?

And that is the question of the day.
In the past year I have been watching them their rate has not inched up, ever.
But I have been wrong before.

[RxCritical]

Originally Posted by Fastguy

When I write IRRL loans, I typically try to structure it with no costs since the recapture to save up what you added to the loan can take a while, but the rate is higher.

Are you a loan processor?

[bsmith]

Originally Posted by RxCritical

And that is the question of the day.
In the past year I have been watching them their rate has not inched up, ever.
But I have been wrong before.

Track Economic Index Trends and Graph Financial Industry Rates

[Fastguy]

Originally Posted by RxCritical

Are you a loan processor?

I am a licensed Mortgage Loan Originator, 17 years originating mortgages.

[RxCritical]

Originally Posted by Fastguy

I am a licensed Mortgage Loan Originator, 17 years originating mortgages.

Thanks!
I guess I will withdraw my application and look around more to see if I can get a better overall deal. I can afford to wait a little. Worst case it jumps up a little and is back to my original deal.

[Fastguy]

I wouldn't withdraw it just yet, see if you can have someone else look at the Good Faith Estimate and make sure everything is listed correctly.

[RxCritical]

Originally Posted by Fastguy

I wouldn't withdraw it just yet, see if you can have someone else look at the Good Faith Estimate and make sure everything is listed correctly.

I already had the original processor look at it. Not sure who else could.