Last week the discussion was rates were about to drop a good bit, looks like the last couple of days they have inched up a bit. I am currently waiting to lock on a home that will be completed in DEC, so I have about 3 months. Dont want to pass up a good lock.....anyone know what the hell is going on or what to do? I know locking 90 days out is going to give me a higher rate anyways, but are they headed south or rising? </p>
Weekly Mortgage Rate Thread
- Thread starter msuJD164
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Last week the discussion was rates were about to drop a good bit, looks like the last couple of days they have inched up a bit. I am currently waiting to lock on a home that will be completed in DEC, so I have about 3 months. Dont want to pass up a good lock.....anyone know what the hell is going on or what to do? I know locking 90 days out is going to give me a higher rate anyways, but are they headed south or rising? </p>
Go ahead and lock in because the rates are unbelivably good. The amount of money you'd save even if the rates do go a little lower is pretty insignificant. On a 30-year $150,000 loan even if the rates went down by .5%, you'd only save about $300 per year, taking the lower tax deduction into account.
they are telling me that recent Fed moves have an affect on the 30 year rates but that the 15 year and shorter terms won't go down much more than they currently are........
Go check the 10yr bond. As the yeild goes do goes rates.
Here is the link for the 10yr bond. http://finance.yahoo.com/q?s=^TNX
The rates will not move dramatically from what you see this week. You may get a .25 or .125 here and there but it looks like steady as she goes for a while.I am locking a guy in today at 4.5% 30yr fixed NO orig fees etc.. If you can get somewhere close to that your good. But remember each rate has a cost and is determined by how much risk is involed with the borrower: credit, LTV, etc...</p>
Here is the link for the 10yr bond. http://finance.yahoo.com/q?s=^TNX
The rates will not move dramatically from what you see this week. You may get a .25 or .125 here and there but it looks like steady as she goes for a while.I am locking a guy in today at 4.5% 30yr fixed NO orig fees etc.. If you can get somewhere close to that your good. But remember each rate has a cost and is determined by how much risk is involed with the borrower: credit, LTV, etc...</p>
This is like mid-2008, when everyone had kindaknew that there was a housing bust and the **** was gonna hit the fan, but they didn't know when, and just didn't want to accept it. you'd see the market take sudden dives as all the investors collectively said "Oh ****, this is it!", then come back up or settle out for a few weeks as investors talked themselves out of what they knew.
well, Greece is going to default in some way or form, and Spain and Italy aren't too far behind. Europe is just in denial about it, and is just kicking the can down the road hoping some miracle pops up to save their ***. For a while Friday it looked like the **** was finally hitting the fan, and investors fled to the safety of US T-bills, driving the rate on 10-yr bonds to 1.77%, which just shatters the old record low. Then Europe found a way to kick the can a bit farther down the road, and investors are wading back in, with the 10-yr rate now almost back to 2%, which is where it's hovered the last few weeks. Investors are back to deluding themselves that everying will be just fine. But in a few weeks, it'll all happen again, until one time the **** finally sticks to the fan.
So, it's ok if you don't lock in, rates are probably not going to go higher any time soon, especially with the Fed's 'Operation Twist'. But like another poster said, the difference is kinda meaningless, especially compared to the risk (here, the risk is that like late 2008, banks stop lending at ANY rate). If a bank is making you take a higher rate to lock, i would pass. I would tell several banks that the first to lock you in at that point's current rates gets your business.
well, Greece is going to default in some way or form, and Spain and Italy aren't too far behind. Europe is just in denial about it, and is just kicking the can down the road hoping some miracle pops up to save their ***. For a while Friday it looked like the **** was finally hitting the fan, and investors fled to the safety of US T-bills, driving the rate on 10-yr bonds to 1.77%, which just shatters the old record low. Then Europe found a way to kick the can a bit farther down the road, and investors are wading back in, with the 10-yr rate now almost back to 2%, which is where it's hovered the last few weeks. Investors are back to deluding themselves that everying will be just fine. But in a few weeks, it'll all happen again, until one time the **** finally sticks to the fan.
So, it's ok if you don't lock in, rates are probably not going to go higher any time soon, especially with the Fed's 'Operation Twist'. But like another poster said, the difference is kinda meaningless, especially compared to the risk (here, the risk is that like late 2008, banks stop lending at ANY rate). If a bank is making you take a higher rate to lock, i would pass. I would tell several banks that the first to lock you in at that point's current rates gets your business.
no closing cost refinances available right now? And I'm not talking about where they fold the cost into your existing mortgage...I mean ones where the lender picks up the cost (all or part).</p>
I would lock in a 15 year right now if it's free. I got a refinance last month at 3.5% and a 3.5%APR, with no fees or points with BancorpSouth.
I expect rates to stay low until after next November, unless our current President is re-elected, then no telling what will happen.
I expect rates to stay low until after next November, unless our current President is re-elected, then no telling what will happen.
Since Friday, rates have been under pressure. Mainly it's hitting at our pricing but hasn't killed our rates yet. Most of it is due to the situation in Europe as there appears to be some hope. The 10 year yield has moved from a low last week in the mid 1% range to now as I type at 2.02. While pricing has been hit on the 15 year, I'm still able to offer 3.25% today on 15 years on a decent loan amount or no hits to the rate. We are at 4.0% on a 30 assuming you have no Fannie hits etc for credit score or LTV etc.
I honestly don't think the investors are going to allow the 15 year to get much lower as there seems to be a floor because of margin. That said, I've been sitting at 3.25% for weeks and I think that will continue unless this bond sell off continues and the yield continues to move the wrong way. I've stopped prediciting and my philosophy is that if you are happy with the current low rate and you are saving thousands of dollars, take a bird in hand. If you want to gamble, fine...take the risk. You may be rewarded...you may not. I've seen it both ways a lot!
CK...I'm about to send your reply...sorry I missed your message.
I honestly don't think the investors are going to allow the 15 year to get much lower as there seems to be a floor because of margin. That said, I've been sitting at 3.25% for weeks and I think that will continue unless this bond sell off continues and the yield continues to move the wrong way. I've stopped prediciting and my philosophy is that if you are happy with the current low rate and you are saving thousands of dollars, take a bird in hand. If you want to gamble, fine...take the risk. You may be rewarded...you may not. I've seen it both ways a lot!
CK...I'm about to send your reply...sorry I missed your message.
If your home is ready in December wait until January to close. You will pay taxes as lot only for 2011. File homestead in January after closing. Just a thought.
<div class="c11text" style="margin-bottom:0">as of 10/20/2011 03:00 PM Eastern</div>
<table class="c21" style="width:80%" cellspacing="0"><tbody><tr>
<th class="c21Hdr" id="h1111">Product</th>
<th class="c21Hdr" id="h1121" style="text-align:center">Interest Rate</th>
<th class="c21Hdr" id="h1131" style="text-align:center">APR
</th></tr><tr>
<th colspan="3" class="c21Hdr" id="h1211" axis="product">Conforming 1<span>and</span> FHA<span> Loans
</span>
</th></tr>
<tr><th id="h1311">30-Year Fixed</th><td id="h1121 h1211 h1311">4.250%</td><td id="h1131 h1211 h1311">4.433%</td></tr>
<tr><th id="h1411">30-Year Fixed FHA</th><td id="h1121 h1211 h1411">4.000%</td><td id="h1131 h1211 h1411">4.978%</td></tr>
<tr><th id="h1511">15-Year Fixed</th><td id="h1121 h1211 h1511">3.500%</td><td id="h1131 h1211 h1511">3.817%</td></tr>
<tr><th id="h1611">5-Year ARM</th><td id="h1121 h1211 h1611">2.625%</td><td id="h1131 h1211 h1611">3.122%</td></tr>
<tr><th id="h1711">5-Year ARM FHA</th><td id="h1121 h1211 h1711">3.250%</td><td id="h1131 h1211 h1711">3.236%</td></tr>
<tr><th colspan="3" class="c21Hdr" id="h1811" axis="product">Larger Loan Amounts in Eligible Areas
– <span>Conforming and FHA.1`
</span></th></tr></tbody></table>
<table class="c21" style="width:80%" cellspacing="0"><tbody><tr>
<th class="c21Hdr" id="h1111">Product</th>
<th class="c21Hdr" id="h1121" style="text-align:center">Interest Rate</th>
<th class="c21Hdr" id="h1131" style="text-align:center">APR
</th></tr><tr>
<th colspan="3" class="c21Hdr" id="h1211" axis="product">Conforming 1<span>and</span> FHA<span> Loans
</span>
</th></tr>
<tr><th id="h1311">30-Year Fixed</th><td id="h1121 h1211 h1311">4.250%</td><td id="h1131 h1211 h1311">4.433%</td></tr>
<tr><th id="h1411">30-Year Fixed FHA</th><td id="h1121 h1211 h1411">4.000%</td><td id="h1131 h1211 h1411">4.978%</td></tr>
<tr><th id="h1511">15-Year Fixed</th><td id="h1121 h1211 h1511">3.500%</td><td id="h1131 h1211 h1511">3.817%</td></tr>
<tr><th id="h1611">5-Year ARM</th><td id="h1121 h1211 h1611">2.625%</td><td id="h1131 h1211 h1611">3.122%</td></tr>
<tr><th id="h1711">5-Year ARM FHA</th><td id="h1121 h1211 h1711">3.250%</td><td id="h1131 h1211 h1711">3.236%</td></tr>
<tr><th colspan="3" class="c21Hdr" id="h1811" axis="product">Larger Loan Amounts in Eligible Areas
– <span>Conforming and FHA.1`
</span></th></tr></tbody></table>
a slightly different take I'll ask since the house lending gurus are together on one thread. I think I'm about a year to a year and half out from looking to buy with the new wife. Advice on how to best ramp up whatever I'll need to max out the best deal (besides lots of cash down of course)?
Just got done pulling both of our credit and mine was clean as a whistle, hers had one mark from a health club that said she didn't pay when she evacuated NOLA during New Orleans but they took it off.
Just got done pulling both of our credit and mine was clean as a whistle, hers had one mark from a health club that said she didn't pay when she evacuated NOLA during New Orleans but they took it off.
but that 4.5 with a story about your loan to value being too low sounds bizarre to me. Actually, to be honest we sometimes get a bump in pricing (good for you and the broker) on a low loan to value on a 30 year. Not the other way around. The only thing that should be impacting your rate would be
a) credit score
b) combined with a higher loan to value
c) loan product
And to be honest, I'm not sure where you are located, but seems high.
Let me know if you have any questions I can help with.
</p>
a) credit score
b) combined with a higher loan to value
c) loan product
And to be honest, I'm not sure where you are located, but seems high.
Let me know if you have any questions I can help with.
</p>
He said if my loan to value was below 60% I would get a better rate. I am just over 61%, but that's with a very conservative estimate on my property value. I think I will actually be below 50% after the appraisal.
Anyway, it seemed high, so I'm shopping.
Anyway, it seemed high, so I'm shopping.