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.