Paying a point
for a six-month commitment on a fixed rate mortgage is reasonable,
especially with a float option 60 days prior to closing. The float
option will offer some protection in a downward interest rate
environment, but don't expect to match the national averages for
30-year fixed if you float to a new rate 60 days prior to closing.
The point paid for the loan adds about one-tenth of a percentage
point to the APR of your mortgage.
New construction has the added
risk that the rate lock expires before closing because of delays
in construction. Make sure that the rate lock will extend past
your anticipated closing date just in case the house isn't completed
Bankrate has a weekly feature
that surveys more than 100 mortgage professionals asking them
whether it's a good idea to lock in a mortgage rate. Check out
Trend Index to see what the experts have to say about whether
or not it makes sense to lock in a mortgage rate. Whatever you
decide, you can't be sure of getting the lowest mortgage rates
between now and closing. If rates go down you'll wish you hadn't
locked, and if rates go up you'll be glad that you did.