Your Questions About Mortgage Rates Today

Ken asks…

What is the average Interest rate for a mortgage today?

(I live in Enid , Oklahoma)

admin answers:

Depends on your credit score AND down payment.

You can have a 800…..and no downpayment..your rate will be around 6.5%-6.625%.
With a 5% down payment it can take your rate to 6.25%
Also, depends on the loan amounts.
If the loan amount is less than 120,000 most lenders will increase the rate. Same thing with less than 100k.

A good place to check is on website.
They post the weekly rates…and are actual closing rates.

Richard asks…

Fed Reservse rate slashes and the current mortgage rates?

Today, Federal Reserve slashes benchmark interest rate to between 0.25 and zero percent. What the heck does that mean? And how come no matter how many times the Fed slash the rate, it barely affects the 15-year and 30-year mortgage interest rates? Does it have something to do with the housing demand? Isn’t the housing industry in the pits now? How come the rates are not going down? Can anyone explain this to me in layman’s language?

Thank you.

admin answers:

The fed reserve rate is the rate at which it (and other banks) lend money to other banks via “ovn’t loans.” Theoretically interest rates are supposed to fall for mortgages but as you’ve seen, this hasn’t really been happening. The reason for this is that virtually NO ONE is loaning out $$ to potential homebuyers during this credit crunch. Basically, banks are afraid to loan money. They’re losing $$ hand over fist right now on people who foreclose due to non payment so the rate they charge has to compensate somewhat for the risk they’re taking. Until the “Risk” factor disappears, the rates will continue to be in the 5-7% range – possibly higher. When the FED basically backed Fannie Mae/Freddie Mac’s mortgages, the “risk” was substantially lowered and the rates fell from about 6.5% to 5.5%, pretty drastic.

So, while the latest rate lowers the federal funds rate to effectively 0.00 or 0.25%, it will do nothing for the mortgage market until people believe the “risk” factor is lowered too.

I would expect to see mortgage rates hover between 4.5-5.5% for the next few months and see how foreclosures do. If they start to drop, then interest rates will drop along with it.

Jenny asks…

what is the mortgage rate today? any website guide suggestion?

admin answers:

Mortgage loan rates and closing costs and fees vary based on many factors, including your particular credit and financial circumstances, your earning history, the loan-to-value requested, and the type of proerty that will secure your loan.

John asks…

How much longer will mortgage rates continue to decline?

I saw today that my local bank’s 30-year fixed mortgage rate is 5.375%. How much longer will they continue to decline, and how low will they go?
I realize that none of you have a crystal ball, but aren’t there companies out there that forcast this type of thing? What are they saying?

admin answers:

Let me get my crystal ball…just kidding. Truthfully, rates are hard to predict because where they are so dependent on many outside factors that are currently very unpredictable. The Fed is trying to fight this recession and adjusting their rates to combat the risk of deflation, inflation and the economic turmoil. Rates for mortgages are often based on treasury bills which are subject to trading.

As an FYI – watch the economic reports. Positive data will cause rates to go up, negative data will cause rates to go down.

Are you watching them for a reason? Trying to guess the best time to purchase or refi…

David asks…

Mortgage rates for 30 years are @ 5.86 today, will they drop anymore?

What other fees will I be charged,that are negotiable?

admin answers:

The seller can assist in buying down the interest rate, or the person that is acquiring the loan can all so buy down the rate. It usually has a cost, approximately . 50 to 1 point of the loans cost. I think it would be worth your time to work the numbers. When a buy down occurs you can roll the cost into your loan.

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