Your Questions About Mortgage Rates Trends

Lisa asks…

anyone have an eye on current mortgage rate trends?

I am buying a home and the rate right now for my loan is 6% (Wells fargo Home opportunities loan 100% financing). Conventional is 5.875 and that is down from last month so I am wondering if I should just lock in my rate or if it is expected to go down more or up soon? I need a good backing for my decision either way. Please help.

admin answers:

6% is pretty good. You could get the lowest rate by putting some more money into it, but trying to get it down another 1/8 of point is not worth the effort.

Rates are going to stay the same for the next 6 months (move up or down a 1/8 point.) since the Federal Reserve has indicated that they are not going to change interest rates soon unless it gets data that differs from their expectations. Go ahead and lock it in.

To see the difference, I suggest you go to www.bankrate.com or www.mortgage101.com to see how much the 1/8 of a point will make a difference.

Just a bit of information, if you have your bank account at Wells Fargo, they could give you a discount on your rate. (maybe an 1/8 or a 1/4). You just have to ask about it.

Charles asks…

what is the trend for mortgage rates in the next 5 yrs?

i’m doing a project on real estates and really need the projected discount rates to make the assumption. anyone knows where can i find it??
thanks in advance =)

admin answers:

1) Steady.
2) Rates could go up if there is a recovery in the market.
3) Rates could go lower if property demand dries up and practically nobody borrows.

Carol asks…

current mortgage interest rate trends?

I am considering refinancing now. But if I wait six months, I will have time to do some remodeling that will definitely bring up the value of my house. This would decrease my loan to value, hence no PMI payments….I however know nothing about the current mortgage trends. I can get a 30 yr fixed at 6.125% with a broker I am working with now. Am I risking too much to wait 6 mos to refi? I currently am in an interest only loan of 7.25% I only did it to get the house knowing I was going to refi in the future. So do I do it now or in 6 mos? I don’t gain much, other than a more stable loan by refi now. Thank you Thank you

admin answers:

Fix up the home but when you refinance tell your friend you want 5.875 or better you could get it now if you needed.

I would definately get the upgrades done asap and then refinance but dont wait till the last minute.

And when you do refinance make sure you get he rate you want and try to get it under 6% its possible now and if things dont go up you should have no trouble getting it

Mark asks…

Where I can find the latest mortgage rate from bank?

Hello all,

I am looking for a website that can tell me the current mortgage rate or mortgage rate trend.

Today, I have called several brokers all of them told me that today’s rate is highest in recent days. So I would like to find this info myself.

thank you

admin answers:

Go to Yahoo finance and look up the yield on the 10 year. When the yield goes up the rate goes up and vice versa….

This is the best indicator of market direction for a 30 year fixed rate mortgage. Understand that there is no such thing as “today’s rate”.

Large institutional lenders actually hire outside consulting companies to see where they are verses the competition. Cost or funds vary from lender to lender and they are passed onto you.

Add to that loan level adjustments (cost that is added for risk profile) and it’s nearly impossible to compare one lender verses another without going through a complete credit application.

Yes, prices went up today. Look at the graph over time though. Rates are still incredibly low.

Steven asks…

How are variable rate mortgages set? Is there a method to find historical trends for variable rates?

admin answers:

Most adjustable rate mortgages have an initial period of a fixed rate (usually 3 or 5 years), and then convert to fully adjustable each year. The floating rate is usually agreed to be some publicly available interest rate (for example, LIBOR, constant maturity treasuries or CMT) plus a spread. The spread is determined based on your credit worthiness. Lots of websites can give you historical rates for these. Bankrate.com can give you current average rates on mortgages and other loans (and deposits).

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