Your Questions About Mortgage Rates Today

Maria asks…

Is it worth paying $325 to revise my mortgage rate down by .1%?

I’m currently locked in at 4.85% on a $170,000 30 year fixed mortgage. Today rates have dropped to 4.75%. Is it worth it to cough up the $325 fee to have my rate revised before closing?

admin answers:

I would not bother paying this. I would pay extra principal on my mortgage.

If you do this at least 1x every year you will save a lot of interest in the long term.
If you look at the numbers, the initial principal amount is very small and you can pay some every month in the beginning.
It saves a lot in the long term. Don’t let anyone tell you that you need the interest deduction. That is money that you never have to spend and you can keep it instead of being able to deduct 15% or 28%- whichever is your tax bracket.
I wish I had known this in the early years of my mortgage!

Betty asks…

what would the payment be for a 175k mortgage at todays reduced rates?

admin answers:

Plug it into a mortgage calculator:

Susan asks…

what is the average mortgage rate and APR I should be getting with today’s crazy economy?

I am a first time home buyer with a good credit score ( i was told it was like 790 or so) and was quoted at a 6% rate. Is that typical or is that high? Based on a 30 year fixed. Thanks!

admin answers:

That’s good for your qualifications. Just make sure you have that down payment before you go looking at homes!

APR should never be more than roughly 1/2-3/4% more than your base rate. If it is, your broker is charging far too many fees and you should shop around for a new broker.

Mandy asks…

My mortgage broker did not lock in a %5 rate this week, she is waiting for rates to lower on Tuesday – wtf?

We are buying a house in California, Bay Area, our broker called on wednesday this week and said, “Here’s your rate today! %5, isn’t that great?!” but then she says, “We’re not locking in yet, we’re waiting for the fed to lower rates at the meeting next week (Jan. 29-30th) She is certain it will affect mortgage rates and they will be even lower for our mortgage – but I am so worried she is wrong and the %5 rate will be gone forever. Rates are already up again. I wish I hadn’t listened to her. I should have had her lock in. Is there any chance at all that %5 rate may return? I am so devestated, it’s hundreds of dollars per month difference. Help!

admin answers:

Three things… Yes, they could go down. It’s possible. The thing with the $ market is it’s a guessing game.
Second… The decision is always yours. The broker must do what you say. We can’t help you to get the confidence to say no to her.
Third…You do have an option. Tell her to give you 5% or you are taking your loan elsewhere. They do have leeway. They will never tell you that but she can buy your rate down with part of her profit.
Hang in there and never forget, you have control.

Helen asks…

What mortgage lender has the best 30 yr fixed interest rate today?

Is there a non-commercial daily update website? I don’t want to get on any more junk mail lists.

admin answers:

They are all about the same rate so just apply to some one who is local to you as there is no web posting that will help you as they are done by area and state.
I am a mortgage banker in TN & KY

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