Your Questions About Mortgage Rates Trends

Mary asks…

Where to find the current refinance mortgage rate?

Hello all,

I was told to check CBOE Interest Rate 10-Year T-No (^TNX)^TNX+Interactive#symbol=^TNX;range=3m

to see the current mortage trend.

Here is my question,

when the CBOE rate decreases, our refinance mortgage rate doesn’t necessarily decrease. for example, today’s CBOE rate is very low, and my lender just told us the refinance rate is 3.875% which is higher than 3.75% last week. While last week, the CBOE rate is higher than today’s CBOE’s rate.

So is there a more related index I can depend on so that I know when the refinance rate goes down?

Thank you

admin answers:

When you finance a mortgage you lock into a rate such that the market trends up or down do not effect your rate until the loan closes. Thus a search for a new index is moot. This is a great question for your individual loan officer.

George asks…

Mortgage: Should I go 5 year or 7 year fixed rate?

Im getting a reasonable offer of interest from my bank but I want to know if I should lock it in at 5year or 7year? What is the trend in interest rates likely to do?

admin answers:

I would go 7, with the possibility of a long sojourn is Iraq and Afghanistan and rising oil prices, I would sacrifice a point of interest for a longer term.
I just saw on the news that my countries banks are starting to amoritize mortgages for thirty years because housin prices are so high.
We pay a low rate 4.25 percent a mortgage broker got us. We have a 5 year fixed which is unheard of.
In my neck of the woods, we paid 140 000 for a three bedroom rancher on an acre two years ago and just go appraised at 225 000 a couple of weeks ago. I think rates will go up the realestate market will flatten out and prices will stabilize.

Ken asks…

Can I afford to wait to buy a house?

My husband and I are going to buy a house when he returns from Iraq in late 2010. Our plan is to save some money by renting a smaller/cheaper place at our new duty station (moving in May) to save money and buy when he returns to retire from the Army in 2010. Is it safe to wait? We would really like to take this time to pay off some bills, etc. but I am scared the interest rates will go back up by that time. What is the projected trend for mortgage rates in 2010??

admin answers:

Rates shouldnt be too high by then but will most likely be higher than now. My guess is 6 to 6.5%. Prices will start to stablize and go back up by then too. Best bet is buy now & buy a foreclosure. Not all foreclosures are trashed. We bought 200k house (appraised that & almost same house 1 block away just sold at 200k), for 165k with bank (seller) paying closing costs, 0 down, and NO work required to house. Took 4 months of searching & waiting though.

Michael asks…

30 Year Fixed Jumbo Mortgage?


I’d greatly appreciate it if anyone can direct me to a source where I can view the interest rates on 30 yr fixed jumbo mortgages, updated on a daily basis. I need to keep track of trends/fluctuations in the foregoing for my boss, and the sites I’ve come across so far seem pretty unreliable and inconsistent.

Thank you very much for any help you can give.

admin answers: perhaps?

Charles asks…

Should I switch from a variable rate to a fixed rate mortgage?

My mortgage term is up for renewal in January 2010. Right now I have a variable rate mtg that the bank will no longer be offering. I can still choose a different variable rate mtg OR I can take a fixed. The bank is offering an early renewal becasue “the trend is that interst is getting higher” and therefore if I wait 6 more months, the variable might be higher than what the fixed they are offering now (around 4%). I always thought that over time, a variable will be the best choice. Why are they trying so hard to convince me to go fixed?

I have about 10 years left on my payments.
Forgot yo add that I live in canada, if that matters
Also, my payment doesn’t increase if the rate does, it just extends the length of time it takes me to pay it off…up to a point (right now if it hits 8.75 then my payment is not enough)

admin answers:

Keep this in mind:

Rates are at historic lows right now. The Federal Reserve’s rate is still at 0%. Once the Fed starts raising rates, that will trickle into mortgages, and they should rise as well. During the 1970s, when inflation was rampant, mortgage rates were upwards of 13%.

If you stick with a variable rate mortgage, you may end up paying close to that 13% if mortgage rates go there again. If you lock into the fixed rate now, you’d be at around 4% no matter what the rates did.

Personally, I don’t think mortgage rates can get any lower. If anything, they might drop marginally – no more that 0.5%. The possibility of rates jumping a lot higher is much greater, IMO.

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