Your Questions About Mortgage Rates Today

Richard asks…

Will the Housing Bill reduce Mortgage rates?

Will mortgage rates go down with the President signing the Housing Bill? Trying to decide if I should lock in rates today, or wait until Thursday when my lenders new rates come out.
If you are not in the Industry keep your comments to yourself.

Mortgage rates are effected by lender confidence.. Rates have gone up due to tougher lending requirements and increased inflation. Will the support of the government help lower rates?
CHFA Loan through Connecticut housing finance Authority.. Rate I locked it in… 5.875% on a 30year fixed. Thank you for you help!
I locked it in this afternoon a-hole.
www.chfa.org
rates on listed on link to the left.

admin answers:

Unfortunately, rates will not be effected by the Housing Bill. Each lender has their own combination of factors that they base their rates on and these they keep close to their vest. “Trade secrets” if you will. They don’t want anyone able to predict what their rates will do. In general, rates follow the 10 Yr. Bond….if the yield goes down, so will rates, if the yield goes up rates will too. Take note: I’m talking about the yield here. The yield opposes the movement so if you see the movement go up by 19/32, the yield will go down and visa versa. I watch money.cnn…if the little arrow is green, it’s good, if it’s red, it’s bad. Right now, the bond closed on Friday at 4.09, a bit high over the past 6 mths or so. Rates have been going up over the past couple of weeks. Another popular factor is what Fannie and Freddie stocks are trading at. When their price goes up, rates go down and visa versa. Other factors: Wall Street activity, unemployment rate, etc. NOW, all of this will not guarantee you a rate increase or decrease. As I stated earlier, no lender will tell you how to predict their rates, but this will give you an idea as to where they’re headed. I’m interested that your lender’s rates only come out on Thursday? I’m a broker, work with over 100 lenders and get rates daily. If there is significant movement in the indicators, I’ll get mid-day price changes…sometimes 2 and 3 per day if there is enough movement in their indicators. They really do keep up with what is currently going on…today…right now, not just on Thursdays. Very few keep their rates for longer than a few days and I’m talking about conventional, prime loans… Subprime, commercial, hard money, etc work on different rules. It truly is a gamble…like Black Jack. Do you hold at 16 and be conservative, or see what card comes next? You may have passed up a 7 and will be happy, or you may have passed up a 5 and be upset. You’ll kick yourself for making the wrong decision either way…but you just don’t know ahead of time. Wish there were more of a definitive answer out there for you. Hope this helps.

Chris asks…

How much would Mr. Olson need today to pay off the mortgage?

Mr. olson has a 30yr fixed rate mortgage with 6.6% APR. His monthly payment is $1272.50 and he has 10 yrs left on the mortgage (next payment is due next month)

How much would Mr. Olson need today to pay off the mortgage?

admin answers:

$111,566.59 Present Value of the loan (payoff amount)
1,272.50 Monthly payment
12 payments per year
120 payment left until balance is zero
6.6% APR

Daniel asks…

What is the prime rate for a 30 year fixed mortgage today?

admin answers:

Do not take it for granted,use your own head to make the judgement.Here is a good resource I have tried.http://mortgage.bestips.info/home-mortgage.html

Laura asks…

Can a mortgage broker give lower rate today compared to a direct bank ?

I am applying for a home loan:

I have got a GFE from a bank and they quoted around 5.30%(30 yr fixed – zero points)

I have got another GFE from a mortgage broker and they quote 4.85%(30 yr fixed – zero points)

1) Does a mortgage brokers usually give better rates than direct banks ?

2) How do I know that the mortgage broker will give me the GFE rate what he gave me today, so there are no surprises later ?

3) Are there any questions or something i need to ask the mortgage broker to make sure I am getting the right deal ?

admin answers:

Pretty much, they all have the same rates. However, with a mortgage broker, they are looking out for the best rate between a ton of different banks that they work with. If you go through a bank directly, they are only looking out for the OWN rates.

Your closing costs are going to be exactly the same through both, however. Everyone usually has around the same origination fees, processing fees, credit report fees, etc.

I would go through a mortgage company. They can lock you in with a different lender if rates or turn times are better somewhere else.

Paul asks…

How much will I roughly save when my mortgage rate changes?

I’m currenty making payments of £824 a month on a £130000 repayment mortgage over a 25 year term. It was Fixed at 5.6% for two years which comes to an end in Dec (i.e. there will be 23 years to go). The Standard Mortgage Rate for the mortgage provider is currently 3.99%. If I was able to switch to the new rate today how much would I be saving?

admin answers:

£130000 x 23yrs @ 3.99% = £728 per month, so approx £100pm savings.
However in December when your current fixed rate ends, I would seriously consider another fixed rate. Do not be lulled into a false sense of security with artificially low variable rates. They will go up, the only question is when.
At the appropriate time speak to an Independent Mortgage Adviser.

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