Did I make the best decision?

[RAlmario]

I spoke with my lender today, and the home builder gave me some options: lock in at 4.25% APR or 3% closing. The house will be my first home, and I'm located in Las Vegas, NV. The house isn't going to be finished until February, so I won't be able to lock in a rate until December unless I take the option of 4.25%. The current rate today was at 3.75%. I can lock the rate at 4.25 also, but it would cost about $4,500 out of my own pocket. I chose to take the 3% towards closing, save my money, and hope that the rates won't go up higher than 4.25 by December. If the rates do go higher than 4.25%, I always have the option of buying it down to 4.25 (hopefully it'll be less than $4,500). What do you think the chances of it going higher than 4.25 by December? Do you think that what I did was the smarter move? Any comments/suggestions would greatly be appreciated.

[fredk]

you did what you thought was best for you

no one here has a crystal ball so any comments you get about future rates are just guesses

dont sweat what you have no control over

hope all goes well with the build and you enjoy the home when its finished

[RAlmario]

Thanks for replying! I understand that no one can predict what the rates will be in the future. I was kind of hoping that someone who was more knowledgeable than me on trend rates could give their advice, someone could give me some advice that I may have overlooked, or provide feedback if someone has gone through something similar.Here is some info that I forgot to put. The price of the house is $180,000 so 3% closing would be $5400. Again, any comments/suggestions would greatly be appreciated. Thanks again!

[UNDERinLV]

For what it is worth, I would have taken the 3% just like you did! It is a guaranteed reduction...the option of buying in a locked rate isn't as real to me as the 3% reduction. Wouldn't you feel foolish if rates were still below 4% in Dec and you missed the $5400 discount? Just go with it and enjoy your new house!

[RAlmario]

Thanks for the reply. I hope it does stay under 4%. I've talked to other people, and it seems that I've made the more strategic decision. Thanks again.