Mortgage interest rate. If I close now?
I applied for a mortgage today and has a rate of 6.0% if I close today (not yet). This is a year 30 / Fixed, 20% down payment and I have to pay 2.75 points to get this rate. No additional charge for it, if I close out 30 days. However, I'm still 50 days. For 45 days I have to pay one eighth of a point and for 60 days a quarter of a point. My question is, should I lock now as the rate is good or should I wait and the risk of a rise in interest rates. Any idea will be greatly appreciated. Thanks
I postponed for a week or two. At this point, any which is not a document of +, ie, Fannie Mae and Freddie Mac, or FHA and VA (since those are guaranteed by the government), is annihilated. There are still plenty of money invested in bonds. But they are only buying the lowest risk highest quality problems. Thus, U.S. Treasury bonds and mortgage bonds above have a high level of demand. The high demand pushed down the rates, as it can offer a lower rate than someone who really wants to buy. (And if anyone wants buy your bond, the higher the rate you pay will help interested buyers.) In a few weeks, this should disappear, to some extent. Meanwhile, first place mortgage rates have been declining gradually over the last week or so, and probably not done yet. Even if it stays the same for two weeks, that will save you 0125%. For what it's worth, you're getting those offers are very fair, based on the types of today. But I have to ask: How long planning to be in this house, or even lending it? Most loans last only 5-7 years before being paid through a refinancing or sale. It generally takes 5-7 years before the breakeven point in the payment of points. It has demonstrated its loan officer that the period of equilibrium? Are you sure you end up really benefit from paying these points in advance? If your loan agent is having trouble figuring out his term of balance, I consider that good signal to find perhaps a new one.
Mr Mortgage – Home Equity Delinquencies Surge
