My attorney has received a letter saying that the seller would like to close before the beginning of July. This means I have some scary decisions to make. I want to lock in my mortgage rate, as the rates are already a lot higher than when I signed my contract almost 6 months ago. But since new condos are notorious for having their closing dates postponed due to construction delays, I don't want to lock in too early and then have a hassle trying to extend it if the closing doesn't happen when it should.
I am looking at a couple of different scenarios-- one has a longer lock period but a slightly higher rate. It's also better in terms of the breakeven period for the points I'd be paying. I think I may go for that option rather than risk the lock expiring on the other rate and being stuck later.
I still think it will be worthwhile for me to pay a point or two-- given historical interest rates, I just doubt it will drop enough anytime in the near future for me to refinance to a lower rate, so I'd rather pay to buy the rate down now.
I may actually lock this thing in tomorrow! I am so tense right now, and I suppose I will be nervous til the day I close that something will go drastically wrong, like that the construction will be delayed, or that my current apartment will collapse into a sinkhole or something...
On the other hand, while trying to figure out the current market value of the condo I'm buying, I was amused to see that Zillow was estimating the value of some similar units in the area at WAY more than I'm paying, like almost double! I think this is complete crap, though. I suspect Zillow is still a little confused as to the difference between a house and a condo in New York... either that or no one told them the bubble is bursting.
Tuesday, May 16, 2006
Posted at 4:39 PM