When do you think the best time is to lock into a mortgage rate?
lynndh5 asked:
With the fed just meeting, should I wait until the end before I lock into a mortgage rate. The current rate quoted for me by my bank is 6.125% with 5% down or 6.375% for 100% financing. This is my first home purchase and I don’t want to do the wrong thing…..
Benjamin
With the fed just meeting, should I wait until the end before I lock into a mortgage rate. The current rate quoted for me by my bank is 6.125% with 5% down or 6.375% for 100% financing. This is my first home purchase and I don’t want to do the wrong thing…..
Benjamin
Tags: 100 Financing, Home Purchase, Mortgage Rate
March 25th, 2009 at 1:12 am
Darren
Ten Years Ago.
Ever heard the question - “when’s the best time to plant a tree”? answer - ten years ago.
In other words, what’s important is that you do it now.
March 28th, 2009 at 1:02 am
Mary
Either rate is fantastic and there has never been a better time to buy real estate. You can get a lot of house for the money right now. But please do NOT do a 100 percent loan unless the house you are buying is priced way under market. That way you will have instant equity in the home. Its generally not a good financial decision to borrow 100 percent of a homes price. If something should happen (you lose your job or get sick) you have no equity in the home to fall back on.
March 30th, 2009 at 4:35 am
Yvonne
The mortgage rate is more closely effected by the T bill not the feds rate. If it changes any time soon it will be ever so slight, in either direction.
Sounds like your bank gave you good rates already.
April 1st, 2009 at 3:00 pm
Ethel
Funny how this same question keeps being asked. Mortgage rates and the Fed rate ARE NOT DIRECTLY RELATED…
The discount rate is the interest rate the Federal Reserve Banks charge depository institutions on overnight loans. It is an administered rate, set by the Federal Reserve Banks, rather than a market rate of interest. The primary conventional mortgage rate is a market-determined interest rate for long-term residential mortgage loans. A change in the short-term discount rate does not affect interest rates on long-term mortgages.
Historically, mortgage rates have followed the 10 Year Treasury.
BE HAPPY WITH YOUR RATE - AND LOCK IT! I hope these rates are available for you tomorrow - rates change daily, so be ready for a 0.125 - 0.250 +/- bump in the rate from day-to-day.
April 4th, 2009 at 10:06 am
Lawrence
Well, the Fed just reduced rates again, so now is the time. Actually, you should be able to get around 5.875 on a 30 year fixed right now if your credit is good and you are doing a full documentation loan. Ask your bank about the current rate and lock it as soon as possible. 6.125 isn’t bad, but the going rate today is 5.875. You can get a stated income loan at 6.125. I hope this helps and good luck.
April 7th, 2009 at 11:10 am
Florence
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.