Lender Reviews

Glad I chose BNC

Yes, I recommend this lender

I was a little hesitant at first to apply with a bank that is not local. However, after looking at other reviews I felt confident and I am happy that I chose BNC. I got the best rate and as a third time homebuyer had the most stress free process, no nonsense fees at closing and the experience was wonderful. I recommend BNC highly!

By: DeniseR ( Matawan, NJ )

About the Lender

About the Lender

Mortgage Rate Lock Recommendation

Float if closing in 45 days:

Rates are up

Float if closing in 60 days:

Rates are up

Mortgage-backed securities (MBS) and bond prices are up this morning, which means interest rates are down. Yields on the benchmark ten-year Treasury Note have dropped three more basis points (the fourth day in a row that theyve dropped) and are now at 2.03 percent. As usual, this is in response to some news thats worrisome for investors, causing them to move money into the bond market. if you learn only one thing about interest rates, its this: with few exceptions, news thats bad for the economy is good for interest rates. This morning, expect to pay .125 to .250 points less for a home loan; thats a closing cost discount of $125 to $250 for every $100,000 financed.

The Economy

Yesterday, the Treasury auctioned off 10-year bonds and the offering was warmly received. Investor demand pushed bond prices higher yesterday afternoon, and that boost carried over to this mornngs markets. If todays 30-year Note sale follows suit, rates could drop a bit more later today.

We got some more bad news for the economy (but good news for borrowers) in Februarys Retail Sales report from the Commerce Department. Retail Sales fell a shocking .6 percent when analysts had predicted a .4 percent increase. Thats a big deal because consumer spending drives two-thirds of the US economy. Cooling off there erases concerns about inflation, making binds and MBS investments more attractive.

The one piece of good news for the economy (and negative for mortgage rates) was todays weekly unemployment report. Last week, 289,000 new claims for unemployment benefits were filed, fewer than the expected 306,000 and way fewer than the previous weeks 325,000 initial claims. Luckily for people floating a mortgage rate, this is just a weekly report and so its not considered as important. The retail sales bombshell pretty much eclipsed these numbers.

Tomorrow

Tomorrow brings a couple of significant releases — worth watching if youre still floating a rate. Februarys Producer Price Index (PPI) is predicted to reveal a 0.3 percent increase in the overall reading and a 0.1 percent increase in the core data. The smaller the increase, the better for mortgage rates. And the University of Michigas Index of Consumer Sentiment for March, which tracks consumer willingness to spend, is expected to come in at 95.8, a small increase from Februarys 95.4. Anything lower is good for rates, while a higher reading would be not-good for rates.

What Does it Mean to Lock Your Mortgage?

Locking your mortgage means that you and your lender have agreed on an interest rate and price for your home loan. Once your loan is locked, that’s the rate and price you get, regardless of what happens in the financial markets. If rates go up, you’re protected but if rates go down, you won’t benefit either — you close your loan at the rate you’ve locked and you can’t change it. Locks have expiration dates ranging from 30 to 60 days or more, and the longer your lock period, the more it costs. If you don’t close your loan on time, you could end up paying a higher interest rate.

The decision to lock or float your loan can have a long term impact so it’s important you make the right choice. That’s why we offer a quick rundown of the key factors that drive mortgage rates today and everything you need to know.