Your Questions About Mortgage Rates Today

Thomas asks…

what determines mortgage interest rates that banks charge? says 5.8% today, yet banks are 6.5%?

i am comparing a 30 yr fixed on bankrate to a the same in a bank. also, anyone know if there is a u.s. stock ticker symbol for the 30 yr rates?

admin answers:

Depends on the type of mortgage.

Some are fixed rate – and will not alter whatever the bank rate does. Some are LIBOR ones which track London bank rates. Some are capped – which means they vary – to a maximum but not higher.

Depends on the type.

Donna asks…

what company has the cheapest mortgage rate as of today’s date?

admin answers:

That question isn’t as easy to answer as it may seem. I’m a real estate agent, not a lender, but in my opinion, that question can’t be summarily answered by throwing out one rate. I’d shop around and while you are comparing rates, make sure the loan package is the same structure before deciding one company’s offer is better than another. 🙂

Paul asks…

when applying for a fha loan is there a web sight so i can wach the rates. iwas told to me that the mortgage b

rates? the mortgage broker said it was up to her to watch the rates, but i think its my job to watch for rates. she said today 3/25/08 that with a credit score of 750 my fixed fha rate was 6.25%. I FIND THAT HIGH? there has to be a web site i can find my own rates to lock in.
thank you

admin answers:

Sherri, that rate sounds about right for FHA today. The best indicator of mortgage rate movements is the 10 year treasury bond yield – currently around 3.5%. Watch for movements in this figure to see what the mortgage market will do on a daily basis. Be careful about rate quotes you get online and in newspaper ads. As a mortgage broker, I can tell you it is easy to sandbag a quote and then raise the final rate when you’re at closing. Then you’re stuck and basically have to pay whatever I throw in front of you. I won’t work that way, but plenty of mortgage people will so be careful.

If you have to look up rates online, try

Mark asks…

Is it possible for consumers to buy mortgage rate locks for ~12 months?

Most mortgage lenders give you a “free” 60 day lock for the application to process. I am interested in purchasing a lock for 12 months at today‘s rates as I will not be ready for a mortgage until next year. Any advice?
FYI The first answer does not help and appears to be spammy in nature.

admin answers:


Mortgage companies barely give you enough time to close as it is to get a good rate, much less a 12 month grace period.

The silver lining here is—- Obama has this economy so damned screwed up, that you wont have to worry about “locking” the interest rate. The rates will be pretty much where they are now in a year’s time, as this economy isnt going anywhere anytime soon. The Feds are looking at buying up all the low-interest bonds as it is to retire the savings bonds they have out at 7%+…

My advice to you is to wait it out. In a year’s time the housing market will still be in the toilet, prices will still be at historic lows, as will interest rates. Dont believe me??? Look at the last 2 years. 20009 is 2 years AFTER the housing meltdown.. And things are STILL in the crapper in 2011…

William asks…

what is a good mortgage interest rate for today?

admin answers:

If you are seeking the current mortgage rate you will be able to find this in your local newspaper or on the internet. It would mean nothing to you knowing the current interest rate.

Your interest rate is determine by your credit score, the way you pay your debts on your credit report. Also if you are applying for a conforming or jumbo mortgage. Then the other is if you are applying for a conventional mortgage or a government (FHA or VA) mortgage.

There is a lot that goes into determining your mortgage rate. The way you find out the rate you are qualified for is to apply for a mortgage loan through a mortgage banker/broker, preferable one that does FHA and VA mortgage loans.

I hope this has been of some benefit to you, good luck.


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