Wow... rates dropped big time (fixed rate, 2010, foreclosures, credit score)

[MusicCityMom]

VictorBurek,

THanks for asking so gently...no, I don't feel the need to go with my bank because I locked in. Truly genuine curiousity, why would I? The way I understand a rate lock is that the lender has to have some point at which they have final numbers to go do all the final number crunching. Is there some cost to them of which I am unaware? I've been looking at mortgage forums and see people locking in multiple loans.

From my consumer pov, this seems like a pretty straightforward business decision. A difference of 1/2% or more can mean significant savings over the life of a loan.

I wish there could be some special 'government intervention' float down program given the unusual artificial manipulation--that is, if this new rate seems stable.

[NJ987654]

Rates are still good today. up a little, but good.

Any one on the fence or anyone in an ARM that has been considering a refi should at least be speaking to their lender right now.

[lottamoxie]

I had been paying 6.25% fixed 30 yr for the past 2.5 years, waiting for a full pt drop. Today I was able to lock in a 5.25% rate with .125 pts and a 1% loan orig. fee. It will take me 29 months to breakeven but I'm not planning on moving within the next 5 years.

[susancruzs]

I got 5.375 locked last week, I need to go to my bank, didn't today due to the ice and snow. I had a rate of 6.75, just bought the house last year. I'm hoping to be in this house for the next 20 yrs. or more so the added money amount to the loan is no big deal. Talked to the same person that handled my purchase last year, it was very easy, no closing involved, I just have to stop by and sign.

[heydade]

I just got a 30 year FHA for 5.5% !! I am very happy. Locked in and ready to go....I close on Jan.7th

[VictorBurek]

Originally Posted by MusicCityMom

VictorBurek,

THanks for asking so gently...no, I don't feel the need to go with my bank because I locked in. Truly genuine curiousity, why would I? The way I understand a rate lock is that the lender has to have some point at which they have final numbers to go do all the final number crunching. Is there some cost to them of which I am unaware? I've been looking at mortgage forums and see people locking in multiple loans.

From my consumer pov, this seems like a pretty straightforward business decision. A difference of 1/2% or more can mean significant savings over the life of a loan.

I wish there could be some special 'government intervention' float down program given the unusual artificial manipulation--that is, if this new rate seems stable.

Thanks for you honesty.

[susancruzs]

Well, shows you what I know, because I am using the same bank and she said I had papers to sign I thought that would be it. Nope, you folks were right a closing will be involved as it is all new mortgage paperwork, today was the preliminary. I did get the 5.375 though, which is good.

[gc333]

did you guys have to but points to get those low rates?

[kcam213]

Originally Posted by gc333

did you guys have to but points to get those low rates?

Also are these conventional loans?

MY loan officer is quoting 6% for FHA, but no points and no closing cost.

[sneezecake]

Originally Posted by kcam213

Also are these conventional loans?

MY loan officer is quoting 6% for FHA, but no points and no closing cost.

No closing cost is the problem with that. There is no such thing as a no closing cost loan. They have taken your closing costs, rolled them into the loan, and your rate is higher because of it.

Yesterday's par rate should have been somewhere around 5.25 for a 30 year fixed loan. Rates have been at or below 5.5% for the last week now.

A 6% quote may be reflective of marginal credit or of less than 20% down.

Also may be reflective of a loan officer at a non-competitive bank.