should i lock in today for late feb closing?

Absolutely locks in gains. Don't negotiate the car, just get your financing in order.

Cause car prices only go up, right?

This might be a stupid question, but why would you get ANY adjustable mortgage now when fixed rates are at all time lows? Everyone I know is refinancing INTO fixed mortgages.

its a 2 bedroom -- cant imagine being there 30 years --

Then the answer is easy -- Rent

thats helpful - thanks -

FYI. My own rule of thumb is if I can pay off 100% of mortgage at term's end, then I would go for lower rate. If you can pay off in 2 yrs then get 2 yr term, if you can payoff today but like cheap money, thk you USA!, take the 1 yr

Whether you will be there 30 years has nothing to do with whether to get a fixed 30 yr mortgage. In this world, the future of the economy is so uncertain. If you have decided to buy, how much more would a 30-yr cost you? My guess is nominally more, especially if you take into account the tax deduction. If you somehow do end up staying 7+ years or 10+ years, pretty doubtful interest rates will be anywhere near where they are now. Personally, when it comes to risk, I am willing to pay a certain amount to avoid it. Here, I'd gladly pay the difference it would cost to get a 30 year or 15 yr fixed mortgage.

also u may just want to wait until the week of jan 4th. according to what i've read(and i also am looking to finance a purchase) the rate has shot up this week on very low volume trading. in other words with a lot of traders on vacation this last wk of the year is typically very volatile and not always indicative of a longer term trend. good luck. btw i also agree with kyle think its a bit of russian roulette not to get a fixed rate in this economy. just too unpredictable.

I'm assuming you're going for a 60 day lock-in? I couldn't say whether or not rates will go up, or if you should get a fixed or not. However, based on what I've seen and heard and experienced lately, it would not at all be unreasonable for you to not close within 60 days of today. It depends on at what point in the process you are at.

"not at all unreasonable for you not to close..."huh i'm so confused?..not+un+not= confusion

There is not enought info on your loan terms and lock ins to provide any answer to this question. What are the terms of the lock? 60 days? Likelihood of closing inside of 60 days? Is the lock extendable and how much would it cost?

Are you also asking which loan? Way too complicated. However, unless you think you will be or could if needed repay the loan (not sell the apartment) if need be in 7 or 10 years, the relatively small interest rate improvement on these two options seems like a bad trade-off to the stability and peace of mind of a fixed rate loan. I also assume that you did the math, but I doubt that the 2.25 upfront points is money well spent.

heh, I can't believe I used so many double negatives, I often have trouble understanding them myself.:

It is reasonable for you to not close within 60 days:

The Bigger question is: Does the apartment have outlets, are they working, and will you ask for $500 for each non-working one?

We want to know!!!

gotya mm..no worries i don't not do it as well

nycsport raises a good point I didn't think to address: 2.25 points is kinda nutty and would be fairly out of the ordinary. The point of diminishing marginal returns is typically hit well before you plop down that much in points. Do you have an independent financial analyst guiding you through the considerations of this purchase? If not, you really should. This is a major life decision with potential reprecussions deep into your future. It is not to be taken casually and that means you need professional guidance. Owning must be viewed as part of a larger comprehensive plan for your financial future.

help me if my math is wrong
7/1 arm with 0 points is 5.25 (60 day lock)
7/1 arm with 2pts is 4.25 (60 day lock)
so basically breakeven in 2+ years (yeah I know time value but not much TV here) -- what am i missing -

and 60 day lock - .25 to extend --
basically im worried about rates shooting up in the new year -- fair point about low volume which is what has caused rates to creep up (and what has scared me) --

appreciate the helpful people here -

strongly agree that a fixed rate is a nice thing right now with rates looking like this. with the exception of mm's example of first week of jan, for the most part, rates will not be going much lower in 2010. and there is a risk of them running up quite a bit from where there are. i would lock in something nice, low, and fixed, and worst comes to worst you can renegotiate the rate when you are within two weeks of the closing for no fee (i did this - typical for most lenders, but double check with your mortgage person that it is in your terms to be able do so).

http://www.bloomberg.com/apps/cbuilder?ticker1=NMCMFUS%3AIND

RorB, what are the points costing you? Generally it never makes sense to purchase points on a 7/1 as you will not see a return in that time frame. Also, how big is the loan and how much are you putting down?

putting down 25% - each point upfront saving me .5 point in mortgage

FLMAO... it's like marrying a girl for bit tits.. itz fun for awhile then you gotta talk to it... the girl that iz....

Let me ask all you smarties something... if a banker is making you pay 225bps to lock in 2% money... then where do you think the banker thinks IRs are going in the future... and what MUST follow in terms of asset prices? It's a duration bond question with an re equity kicker for extra pts... FLMAO, again and again...

OH, from today's NYT
"“We’ve started to see the possibility of either a leveling off of prices for a few months or perhaps a double-dip,” said Maureen Maitland, the vice president for index services at S.& P."

"It was the fifth consecutive month that prices were up, but the rate of increase has dropped sharply from the impressive gains of the summer...

A tax credit for first-time buyers has been extended until spring, but the urgency that buyers showed this summer is draining away. The Federal Reserve has pushed down rates to the lowest level in decades, but says that program will end by March 31.

Fannie Mae and Freddie Mac, the government-controlled mortgage giants, are tightening their policies for loans in their portfolio. That is making lenders who sell their mortgages to Fannie and Freddie even more skittish about extending credit to new buyers.

The Federal Housing Administration, which has become an important part of the entry-level housing market, is expected to tighten its standards in the next few weeks. That would further crimp the pool of eligible buyers."

AND FINALLY THE ICING ON THE CAKE!!!!
"Put all these elements together, said Dan Greenhaus, chief economic strategist for Miller Tabak and Company, and “it is more than likely that prices have a bit further to fall.""

that is if the big titted girl doesn't look at you first and say "wow i married a know it all...cya"

"7/1 arm with 0 points is 5.25 (60 day lock)
7/1 arm with 2pts is 4.25 (60 day lock)
so basically breakeven in 2+ years (yeah I know time value but not much TV here) -- what am i missing"

Your math isn't wrong R&B, that would be a good deal IF the market rate for a 7/1 was 5.25, which unfortunately it is not. I think a good (jumbo - excellent credit - no points - 25-30% down) market rate for a 7/1 is about 4.625 - so effectively you would be paying two points for a .375 rate break. Shop the 7/1 rate with no points and I think you will make a better decision.

moxie..thks for not correcting my spling... thnkfully thatz why i kept my mouth shut until my wife married me.

I think you need to re-check your math on the up-front points, as well as the savings, if any, from going with the 7/1 or 10/1 ARM vs. a fixed rate. If, by way of example, you have a $750K loan, 4.25% rate will save you less than $6K a year in interest compared to the 5.25% loan, but less than $4K a year on a tax-efficient basis. So the return on your 2 poits up front is more like 3.5+ years, assuming zero return on your $15,000 up front. On the other hand, if you assume some return on the $15K, it may make the return far longer, or negative.

I still think if you look hard at these numbers, run some "what if" scenarios testing your after-tax out-of-pockets if you stay in the apartment for some period beyond your fixed interest rate, and interest rates go to 7%, 8% or more, the fixed loan option will be more attractive. Another thing you could do (and I have done) is split your loan part fixed, part ARM to save some interest, but keep the ARM at a level you will be able to pay off if interest rates spiked.

Who says he/she has excellent credit? is that the rub on the higher rates?

"Another thing you could do (and I have done) is split your loan part fixed, part ARM to save some interest, but keep the ARM at a level you will be able to pay off if interest rates spiked."

nyc_sport, did you accomplish this with a HELOC or from some other vehicle?

"Who says he/she has excellent credit? is that the rub on the higher rates?"

Could be, but that wouldn't explain the spread on the rates based on two points. The loan has the same risk regardless of the points.

juiceman - ignore him - not productive - thanks for your help -

"FLMAO... it's like marrying a girl for bit tits.. itz fun for awhile then you gotta talk to it... the girl that iz.... "

Is that why you married your wife the doctor, because of her "bit tits"? Or did you mean "bitty tits" or "little bitty tits"?

By the way, is this your Rolex? http://www.luxuo.com/wp-content/uploads/2009/04/rolex.jpg