| reformedbanker - 2/3/2024 11:03
As a buyer, only way I would sign a locked interest rate contract is if the purchase price is discounted. The yield curve is predicting that if you get a regular mortgage loan, it is likely that you will have the opportunity to refi lower in the next 2-3 years.
This may not end up being the case for many reasons, but a locked interst rate contract erases all chances. Read my reply below, the rate will be discounted somewhat from bank rates. No need to discount purchase price too. Rates can go both ways, if they go higher you’ll be glad it’s locked. You can’t guarantee they are headed lower. If you could, you’d give a variable rate, and guarantee the day they signed purchase agreement is the highest rate they’ll see. Are you willing to do that? |