Your Questions About Mortgage Rates Today

John asks…

since the fed cut rates again today how long will it take to get to the bank?

for example. i want to refinance my mortgage. of course i want the best rate possible. since the fed cut the rates again today how long should i wait before i can go and apply for a refinance??? my husband is trying to tell me it takes about 2 weeks. but that seems like a long time to me. i would think maybe 2 days. does any one know this????

admin answers:

When the fed cuts rates it cuts the Federal Fund Rate not the mortgage lending rate. It does have an indirect affect but the rate cut affects the short term borrowing between banks.

Although mortgage rates should drop this is based on the 10 year bond.

Jenny asks…

I closed my mortgage last night and today i find out that rates are not what i have been told.?

i know i am stupid and should never signed the loan yesturay but it’s too late now. Does any one know how i can stop the loan or cancel?
I got 5 year arm lona and only at closing ( last night) i find out it’s 9.25 percent interess which i never would agree if i knew it.
Now closing is done and i am trying to find legal ways to stop it since i can’t afford it.
I understand stupid ppl should be teached good lessons and i probably will learn my lesson but for now i will apriciate any help.
Thanks
“This would have been on your Good Faith Estimate, or your ARM disclosure, or your Lock-In Agreement. You need to look thru every document you signed with the lender prior to the closing. You have copies of these, right? ”

Well my GFE and TIL are totaly different, it’s like night and day compare what is during the process and what was at closing.
Example:
TIL APR during process is 2.37 for 359 month and at closing 9.25
GFE 2.37 during process and 9.25 at closing.

admin answers:

When signing a contract, they should explain you the contract clearly. If they did not, I think you may cancel the contract. Or file a complain with your state’s customer affair. Dont take my opinion as last option, talk to a lawyer.

Linda asks…

Will Mortgage Rates Keep Falling?

So I got a call from my bank today and said that mortgage rates are around %5.2. I am currently locked in at %6.0 and I am wondering if it looks like the mortgage rates will continue to fall or if now is a good time to refinance.

admin answers:

Mortgage rate could keep going down or stay the course until the housing crisis has been controlled/managed at acceptable level. When refinancing, make sure to compare between the cost of refinancing and savings by refinancing.

Lizzie asks…

I just locked in a fixed mortgage rate at 6.125, is this good?

Im buying my first home and I locked in the rate today of 6.125 on a 30yr fixed mortgage, was this a good rate? I don’t plan to sell it for a long time. It sounded good, but I don’t know much about this type of thing.

admin answers:

Not a bad rate. Consider buying the rate down if you dont plan to refinance and stay in the home for a long time this small amount you will pay wil save you a boat loan of money.

Pay 1.5% to buy the rate down. .75% it will give you a rate of 5.40

200,000 with the rate bought down to 5.40

200000X.0750=1500 per year
1500 X 30 years = $45,000 this is the added interest you save by buying the rate down and you well know interest is payed up front so the first 10 years you pay mostly interest.
If you took what it is saving you 125.00 per month and sent an additional check of 125 marked apply to principle your mortgage would be paid off in 24 years and

Date (#Months) Payment Towards Principal Towards Interest Remaining Amount

Year 1 2007-09 (#001) $1,248.06 $348.06 $900.00 ($900.00) $199,651.94
Year 5 2011-09 (#049) $1,248.06 $431.77 $816.29 ($42,121.22) $180,966.28
Year 10 2016-09 (#109) $1,248.06 $565.26 $682.80 ($87,206.78) $151,168.24
Year 15 2021-09 (#169) $1,248.06 $740.02 $508.04 ($123,079.69) $112,157.55
Year 20 2026-09 (#229) $1,248.06 $968.81 $279.25 ($146,891.53) $61,085.79
Year 24 2030-09 (#277) $1,248.06 $1,201.82 $46.24 ($154,787.41) $9,074.79
2031-05 (#285) $511.58 $509.29 $2.29 ($154,960.62) $0.00

Richard asks…

why mortgage ezy raised home loans interest rates by 0.5% today? anybody?

admin answers:

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