Interest Rates
When is the Best Time to Lock?

When it comes to mortgage loans and interest rates, it’s never a good idea to gamble. That’s why I typically advise my clients to lock in an interest rate at the earliest opportunity. This is just one step of the standardized system we have put in place to ensure the best possible loan experience for each borrower that we work with.

A mortgage loan cannot be closed without a locked-in rate, and there are three main elements to take into consideration:

• Interest Rate
• Points or fees
• Length of the lock

Locking in a rate does not obligate the borrower to commit to the loan until the loan is actually closed. The lock is merely a security measure designed to eliminate the risk of market volatility throughout the duration of the purchase or refinance transaction. Our standard procedure is to lock in a rate as quickly as possible. My team and I want our clients to know that while interest rates fluctuate daily, most lenders do not want to lose any business because of it. If a significant rally causes interest rates to drop 0.25% or more, we know that we can most likely renegotiate the rate.

By knowing our clients’ needs and working intimately with them to make the right decisions early on, my team and I are proud to say that we have helped them to achieve their home ownership dreams.

Please feel free to contact me by phone at 540.986.0270, ext. 325, or via email at jasonbialek@atlanticbay.com.

Sincerely,

Jason Bialek

Sr. Mortgage Banker

ENHANCEMENT OF REGULAR REFINANCING LOANS: Section 504 of PublicLaw 110-389 made changes to VA’s regular (“cash-out”) refinancing loans. Effectiveimmediately, the maximum guaranty amount for regular refinancing loans is the same as themaximum guaranty amount for purchase loans. Regular refinancing loans are now available forup to 100 percent of the appraised value of a home, which is an increase from VA’s previous threshold of 90 percent. All other VA program requirements for regular refinancing loans
remain the same.