LOCKED IN

This has been a very frustrating situation working with NVR but all of my bitchyness and waiting paid off today.  Here is what occurred:

Back around August 24th, the rate dropped when the stock market took a dive.  The rate quoted to me via NVR was 3.875 which was very competitive to the local banks.  It took me hours to call around the various banks, get their rates and closing costs to figure out that this rate from NVR was good.  At the end of the day I tried to lock in.  NVR said I couldn't lock in without the estimated closing date from the Ryan Homes PM.  I sent an email to both our loan officer and Ryan Homes for this date.  When they didn't communicate I lost that rate.  The rates change daily from NVR and when Ryan Homes didn't respond to me on behalf of NVR......I lost the rate.

The days following saw rates up to 4.25.  I had several options.1) pay NVR nearly 5,000 to buy down the rate to what I was trying to lock in or 2) have the monthly payment go up by $75.00 resulting in paying $27,000 in additional interest.  This was unacceptable since I lost my rate because NVR and Ryan Homes couldn't speak to each other.

I complained at everyone as many didn't fully understand the consequences of not responding to the email I sent looking for a closing date for NVR.  Both NVR and Ryan Homes agreed to give me 1.5 points to buy down the rate.  Even with these points I still had to pay thousands to get back to 3.85%.

There were a few days where the cost to me would be 1,000 to buy the rate.  I focused on learning the market, focused on analytic and the relationship of mortgage rates to everything else.  PNC's mortgage loan officers taught me to look at the 10 year treasury rate which had a direct relationship to NVR's rates.  I also noticed that October's rates are traditionally less than September.  I pushed the envelope of waiting with NVR until today.

Today NVR told me they can offer me that same rate from August 24th with their points and no cost to me.  This is huge!!!  The fed is expected to revisit rates again in late October and there is still lots of talk about raising them again.  I believe I looked into a rate that most likely will be lower than market for the years we live there.

Patience paid off........we locked in at 3.875