[Allheart]

Hi and I thank you in advance :)

Hubby and I took out a home equity loan - and wanted to lock in the rate a couple of weeks back... but they lady at the bank said to wait it should be going even lower.

I'm getting nervous - but should we still wait :confused:

Thank again,
Allheart

[kp2171]

Just saw this was bumped up.

If you think you are getting a decent rate (and these rates are great historically) and its financially responsible for you to take on this debt, id just do it. Sure, the rates might get cut again, but man... if the money is there now and the money is really cheap, and you can take on this debt without straining your finances, why go mad?

Some banks are starting to limit lines of credit to small businesses... if a further credit crunch is coming, it might be better to get it and do the work now.

Rates dropped some after my last home buy, but I didn't lose a wink of sleep over it. Lock, load, go.

[Brownie Girl]

If it's a true home equity line of credit that you can draw and payback over and over the rate will flucuate with prime as it changes by the Federal Reserve so it shouldn't matter what the rate is now. As for when to lock if your loan is a fixed rate that will be over the life of the loan you need to make your own decision and not rely on the loan officer. You can watch the market and typically the 1st Tues. of every month is when the Federal Reserve meets to review short term lending rates (rates used overnight between banks) and if they lower it, it sometimes can have a positive effect on the interest rates (which are determined by the buying and selling of mortgage backed bonds). Whatever you do, do it and don't look back as you can never time the market perfectly but once you are comfortable do it and get a lock in agreement so you know the loan officer is floating you to benefit her on the commission.