Will the interest rates for home mortgage expected to rise in the next few days?. or fall?
Renting & Real Estate
vinz asked:
I am about to lock our application for home mortgage. before it, i would like to know if there’s still a chance for it to go down? Please help! Is it good to lock now or not yet? the last time we went to the lender, the interest rate is 6%.
Kansieo.com
I am about to lock our application for home mortgage. before it, i would like to know if there’s still a chance for it to go down? Please help! Is it good to lock now or not yet? the last time we went to the lender, the interest rate is 6%.
Kansieo.com
September 1st, 2008 at 3:11 am
The mortgage interest rate in not connected to the rate you hear about when they talk about the Federal Reserve lowering interest rates. It is tied to Bonds. Usually when the stock market does well the mortgage interest rates rise a bit. If I were you I’d lock now…you really never know, so even though it may be a gamble it won’t make much of a difference as the interest may fluctuate only a quarter percent, which doesn’t make that much difference to your payment.
Just DON’T get an ARM and don’t get an Interest Only loan. Also, watch your APR on the Truth in Lending…you don’t want APR to be more than a half percent higher than the interest rate you are paying, or your lender is making out like a bandit.
September 1st, 2008 at 10:01 pm
There is always a chance for anything to happen. You gamble on this chance and you might win. There is talk that the rates will fall again.
If something happen and the trend goes the other way then you will lose when the rate goes up.
No one can really give you any advice about when to lock your loan except your mortgage broker and what you feel as the borrower.
I have know of people that have loans approved and all of a sudden things changed and they were no longer approved.
So with the market the way it is now, the decision is in your court.
Who are you gonna blame if we all tell you to wait and all of a sudden the rate goes up?
Since you have an approval, I think I would lock, because the any change up or down would on be about and 1/8 which would not really make a dent in you payments one way or the other.
I hope this has been of some information to you, good luck.
“FIGHT ON”
September 5th, 2008 at 12:25 am
I found the rate is rapidly changing. I just locked my mortgage yesterday with my credit union at 5.250% (no points) for a fixed 15 year loan. My opinion (and it’s just that), lock now if you get a good rate. I also looked at a private mortgage banker who was very competitive.
September 5th, 2008 at 7:55 pm
If you are really worried you should lock now. Its always better to be safe than sorry. The rates don’t look like they can go too much lower, but I don’t see them going up anytime soon.