When does my interest rate get locked through NACA?

Getting your interest rate locked as soon as possible is extremely important. Lets take a look.

On a 300k loan with a 3.5% interest rate, your PI payment(Principle & Interest) on a 30 year loan is $1,347.13

That same mortgage with a 3.75% rate is $1,389.35.

That is a difference of $42.22 a month, or $506.64 a year.

If you are looking to buy the interest rate down through the program, that .25%= 1 buy down point. On a 300k mortgage, that is $3,000 MORE you would need to bring to the table for that 1 point.

Your interest rate is now locked in on the day we receive your Purchase and Sale Agreement. This was changed several months ago from the date of the bank application.

While interest rates have risen over the past few weeks, it’s anybody’s guess where they will go in the short term. The increase is directly related to investors buying greater amounts of Treasury Bills from the government since the election, but that could level off or even go back down in the near term.

There are always several factors that affect mortgage interest rates, and we have been at historically low levels for a long time now. There are questions about what may happen with the near certain rate hike the Federal Reserve will finally enact shortly. However, that is typically more likely to affect credit cards, auto loans and other shorter-term forms of borrowing rather than mortgages.

The thing to remember though, is that the NACA rate is ALWAYS below the current market rate, no matter what it may be, and you always have the interest rate buy down option which will still have the ability to take your rate to near zero. As of this writing, the 30-year rate is still 3.5% (market is at 4.0%) and the 15-year rate is 2.875%.

You still come out ahead no matter what. Getting your interest rate locked as soon as possible is important!

Kristopher Fraley , Realtor

A few years ago a serendipitous event(purchasing a home through the NACA program with a 0% 30 year fixed interest rate) inspired me to become a licensed real estate agent in the DC, Maryland & Virginia area, and I love it! There is nothing greater than giving back and its a fantastic process that I feel lucky to participate in. With so many money hungry sharks preying on innocent people in the real estate industry, I feel honored when people trust my team to help them obtain the best terms on a mortgage possible. I can be reached by emailing kris@no-downpayment.com