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When to lock
By choosing the correct time to lock and utilizing AmeriFund’s extended locks (up to 360 days) you can trim hundreds or even thousands of dollars off your financing costs. This chart shows the movement of interest rates over a recent three month span of time. The jagged blue line shows the actual movement of rates. The green and red lines show what is called a moving average (30 and 50 day moving averages in this chart) which average out the volatile ups and downs of interest rates from day to day.
From a locking standpoint, your objective is to time your lock at the point when the actual rates get near or dip below the moving averages. In this chart the red arrows indicate the bad times to lock and the green arrows showing prime locking opportunities.
The difference between locking at the green arrow rather than on day where there is a red arrow can be as much as $2,000 to $3,000 on a larger conforming loan or jumbo loan.
AmeriFund loan consultants are trained to watch and analyze bond market data to assist applicants with decision of deciding when to lock. This type of counsel can save an applicant hundreds or even thousands of dollars in financing costs.