Your Questions About Mortgage Rates Trends

Paul asks…

Should I lock my rate now or wait?

I am in the process of buying a home in Oklahoma with an expected close date of Jan 31, 2008. My lender is working on the final approval and I have been told we should be able to lock our rate very soon. My good faith estimate currently is 6.059% on 30 year loan with $900 mortgage origination fee. My lender has said that because I am self-employed that this is a very good rate. My question is should we wait till the last minute to lock or lock now? It looks like the trend is downward on interest rates the past several months with a few bumps upward occasionally so I am hesitant to lock too soon. What should I do?

admin answers:

You didn’t say how much your loan was for. Usually the mortgage origination fee is equal to 1% of the loan. Anything more is high, anything less is low, but usually means that you pay a bit higher interest rate.

There are no 6.059% rates. I’m guessing this is the APR, which IS NOT your interest rate, but the rate plus the cost to borrow the money. Your actually rate should be a bit lower.

Even if the rate was 6.059%, this is a GREAT RATE for a self-employeed borrower.

I WOULD LOCK IN TODAY. You say that you are to close in less then 3 weeks, but still can’t lock in surprises me. Usually you can lock in 30 days before settlement. And in MOST cases 60 days without a lock in fee.

Rates are great today. Will the go down in 3 week enough to actually make it worth the risk of waiting. NO.

Could rates go up. YES. God knows what bad news is in the works. When the news of the subprime problem came out several months ago, rates jump anywhere from 1 to 2%.

Lock in today and be able to sleep at night.

Michael asks…

Why are borrowers STILL defaulting on mortgages, even though Obama is subsidizing their loans?

Maybe we should now start paying these people’s alimony, credit cards, and car loans too, what do you think?

excerpt…
The number of homeowners who defaulted on their mortgages even after securing cheaper terms through the government’s modification program nearly doubled in March, continuing a trend that could undermine the entire program.

Sixty percent of modifications undertaken by banks in late 2008 were in default a year later, according to the latest Mortgage Metrics Report compiled by the Office of Thrift Supervision and the comptroller of the currency.

Loans for which the payments were decreased by at least 20 percent failed at a slower but still significant rate of about 40 percent.

The government program takes a more aggressive approach, lowering the interest rates for all loans. On many loans, terms are also extended or principal payments put off for years. Treasury data shows that the median savings for borrowers receiving permanent modifications is $512 a month.

Many borrowers remain deeply indebted, however. They owe not only on the house, but on homeowner association fees, home equity loans, car loans, alimony and credit card interest.
http://www.nytimes.com/2010/04/15/business/15mortgages.html

admin answers:

Because, despite the band-aid fixes, the basic problem is STILL the fact that the out of control banks lent a whole lot of money and wrote a whole lot of loans to people who never should have taken them. Why? Because of banking deregulation initiated by Republicans. These Republicans were, and still are “owned” by the banks who use them as their puppets. They’re still trying to shove through deregulation, today, even after the banking crash, and the monotonous defaulting of hundreds of thousands of home loans.

We were fools to tie so much of our economy into the very roofs over our heads, and now we’re paying for it. Your house is your home. It’s there to keep the rain off your head, not to pump up the economy at a never ending 5% a year. We were relying on real estate to grow the economy while common people couldn’t afford a place to live. Houses became too expensive. How can I tell? Look at the number of defaults, which happen to be the central topic of discussion, here.

BMOVIES60: Yes, fair housing and lending laws, pushed through by Democrats are also responsible for the situation. But, every Republican administration since Reagan has presided over ever increasing banking deregulation legislation. “No deregulation”? Are you kidding? There has been massive deregulation, since the 80’s. Sorry. You have to accept your share of the responsibility. Please continue to call me names, if you feel it’s justified, and if you feel it will lower the conversation to your level.

In any case, since you clearly failed to notice, your insults and very literate points actually support my central thesis: the banks lent money to borrowers who should not have gotten loans. The only difference is that I contend that it was a result of the combined efforts of incompetent Democrats and Republicans and you seem to want to blame it all on Democrats, ignoring the fact that Republicans seem to consider meddling in banking regulations a kind of second career. Thank you for agreeing with me on my central point.

Charles asks…

Why do Obama supporters continue to pretend the absurd spending is “necessary for recovery”?

After Obama has HIMSELF ADMITTED long term trends are not sustainable, and that we are out of money?

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg

May 14 (Bloomberg) — President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”

http://www.youtube.com/watch?v=rGo83FofDhU – “We’re out of money.” – Barack Obama

So, the spending continues DESPITE these acknowledgements, and yet it is still “stimulating the economy”, or “cleaning up Bush’s mess”, or whatever other lame excuses you guys use, right?
Reality Has, either you’re a troll or you’re the biggest jackass on answers. Did you not see THE ENTIRE QUESTION?

Why would Congress and the President plunge us into further debt AFTER ACKNOWLEDGING what is said in those links?

admin answers:

Cause` they ain`t spending “their” money ; their spending ours` !!!

Robert asks…

help with social studies please. only a few questions. please answer ASAP.?

3.Which was a weakness in the economy and one of the causes of the Great Depression?

failure to collect income taxes

problems with home mortgages

risky banking practices

too many people on government welfare

6. Which group experienced falling incomes, a credit crisis, and a poor standard of living in the years before the Great Depression began?

auto workers

bankers

farmers

stockbrokers

7 What was one impact of the stock market crash and the Depression on American society?

a return to a more rural way of life

record high rates of unemployment

a trend toward larger families

government redistribution of wealth

10. Which of the following did not contribute to the Dust Bowl conditions in the plains states?

overplanting of wheat

stripping of natural grasses

severe drought

clear-cutting of the region’s forests

11. How did many plains farmers respond to the challenges they faced during Dust Bowl conditions?

They left for California in hopes of starting a new life.

They began using more productive farming techniques.

They marched on Washington in hopes of federal assistance.

They formed cooperatives to share equipment.

12. What was one effect of the Great Depression on the lives of ordinary Americans?

Thousands of people lived in makeshift shantytowns.

America experienced increases in marriage and birth rates, as fewer women had jobs.

Fewer people bought televisions.

More people applied for food stamps and welfare.

19. What did Herbert Hoover believe was the job of the government?

to give people direct aid during crises

to regulate business

to interfere as little as possible

to strictly oversee the banking industry strictly

i have a 50 questions extra credit social stuides paper. i already have all of them done except a few. please answer as many as possible. thanks and MERRY CHRISTMAS

admin answers:

3. Investment banks merged with commercial banks and used depositors money for high risk investing. The Glass-Steagall Act or Banking Act of 1933 was a result and put up a wall between investment and commercial banks.

6 Agriculture crops were over planted over supplied resulting in lower prices and less profit for farmers. Wheat was so over produced there literally was not enough places to store it. Farmers went broke because the crops were worthless because of over supply The government actually bought, then burned crops and destroyed livestock to curb the supply

7. The official unemployment rate reached 25%. The real rate including those who stopped looking for work, was nearly 50%.

10 The plains originally were prairie grasslands.

11 Most adopted new methods and techniques

12. There was no welfare or food stamps at the time. Television was a very brand new technology, and rare for even the rich to own. The hundreds of tent cities or shantytowns that people lived in were called “Hoovervilles” after President Hoover

19 Although accurate history disputes it, Hoover was and is generally viewed as a laissez-faire supporter. He was accused of and blamed for the great depression because of his perceived do nothing policies. He believed business should be self regulating. He was accused of abandoning African-Americans during the great Mississippi flood. And again, welfare programs, social security, unemployment, food stamps and government aid was not available until late in the depression, and after. The Federal Reserve took no action. So to interfere as little as possible is correct.

Merry Christmas to you

Daniel asks…

history stuff help mi plzzz?

Time Remaining:
1. The stock market crash triggered the beginning of the Great Depression, the worst economic crisis in U.S. history. Which factor did not contribute to the crash?
(Points: 1)
a false belief that stock prices would continue to rise

purchasing of stock on credit by individuals and trusts

overvalued stock prices

too many ordinary people owning stock

2. Which one was a cause of the Great Depression?
(Points: 1)
failure to collect income taxes

problems with home mortgages

risky banking practices

too many people on government welfare

3. What was one impact of the stock market crash and the Depression on American society?
(Points: 1)
a return to a more rural way of life

record high rates of unemployment

a trend toward larger families

government redistribution of wealth

4. Which did not contribute to the Dust Bowl conditions in the plains states?
(Points: 1)
overplanting of wheat

stripping of natural grasses

severe drought

clear-cutting of the region’s forests

admin answers:

-purchasing of stock on credit by individuals and trusts
-problems with home mortgages (if not that then risky banking practices)
-record high rates of unemployment
-stripping of natural grasses (this is kind of a guess)

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