Your Questions About Mortgage Rates Today

Michael asks…

I am going to buy a home in 1 year. Can I lock in mortgage rates today?

I will be purchasing a house in one year. I believe long term mortgage rates are around their low. I am concerned about where those rates will be a year from now. Is there a way I can agree to borrow from a lender and lock in today‘s mortgage rates?

admin answers:

I hate to be blunt but everyone in this thread is incorrect.

Yes you can lock in a loan rate for a year, it will likely cost you a point or so (not such a big deal if you expect rates to rise). The longest free lock is usually 45 days. Some shady broker house will charge you to lock rates but large BANKS like mine really aren’t concerned about a few dollars here or there if we can do your entire loan instead. If you have any questions feel free to email me. Otherwise good luck, and I would stop taking advice about the biggest financial decision you will ever make from people who aren’t in the industry.

Richard asks…

What is the total out of pocket expense on a loan using mortgage rates today on a house in Texas for $120,000?

What is the out of pocket for 3.5%, 10% and 20% down? Taxes would be $3,200 per year. Credit is good. I get tripped up on PMI and FHA charges.

admin answers:

I have been a Realtor in Texas since 1978. Today you can get the lowest rate by paying some costs- or get the lowest costs by paying a little higher rate. They usually have 3 or 4 levels for this. A mortgage company is required by law to give you a pretty accurate estimate. If you are buying a house- remember the loan company does not require a home inspection so they don’t figure that into their estimate- but you should get one. It will cost you $325 to maybe $400 or in some cases more. They will estimate the property taxes unless you can provide them a solid figure and a very rough guess of home insurance unless you can tell them how much your company will charge for the type you want.

Of course if you put 20% down you would not be required to have an escrow account but you will still have the expense- so I would figure it as if I have an escrow account anyway.

David asks…

What are the mortgage rates today and how can you check?

admin answers:

This site compares rates.

Daniel asks…

Will the big federal interest rate cut today lower mortgage interest rates?

admin answers:

Realtors and some banks will tell you that the Fed rate has nothing to do with mortgage interest rates directly. Since the Fed rate is the amount charged for loans between banking institutions, if it is lower, they have the option of offering that new money at lower interest rates. Thus, the Fed’s rate may only indirectly affect mortgage interest rates.
Historically, though, drops in the Fed rate have had a trickle down effect through increased competition between lenders for new customers.

Lizzie asks…

Home owners: with mortgage rates at 2yr lows today, have you thought about refinancing?

If not, what’s holding you back? Hope for lower rates, lack of equity, market or employment fears, or is it something else?

admin answers:

Interest rates are pretty great right now, but my 30-year fixed is still lower than anything I can get without paying a ton of points up front.

Rates are going to have to come down another 1/2 a percent or so before I’d even consider it.

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