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We are first time homebuyers who have secured a VA loan with our bank. If we were to lock in our rate now we would have an interest rate of 5% after purchasing 1.375 points. I think 5% is a good rate, but could we do better? Is it possible rates could go down in the next week or so? Is it just being greedy to hold out on locking in the rate? Seems to me like a bit of a gamble waiting and I don't want to get left out in the cold because I was selfish.
I just locked a rate at 4.85% today with paying .25 points. I have been waiting the past few weeks or so also hoping that rates would go down but they kept risising week after week. They just dipped down today with my lender so I locked. My closing date is coming up really soon so I had to lock pretty soon anyways. I've been searching articles on the internet and it seems like 50% of economists think rates will got to 4.5 and the other half think it will rise. So not sure where it is going??!? but I feel comfortable...
I feel the rates will go down. The Government wants people to buy houses and what better way to do that than to manipulate the rates lower? Anytime the rates have a big drop it makes people refinance and purchase homes. Look for the rates to come back down to the 4.5% with no points IMO.
I'm a loan officer. I've never seen it this unpredictable. There are too many things going on that have never happened before so there is not history to reference. With that said, if I was a better man, I'd say they go down in the next few weeks/months.
I just locked a rate at 4.85% today with paying .25 points. I have been waiting the past few weeks or so also hoping that rates would go down but they kept risising week after week. They just dipped down today with my lender so I locked. My closing date is coming up really soon so I had to lock pretty soon anyways. I've been searching articles on the internet and it seems like 50% of economists think rates will got to 4.5 and the other half think it will rise. So not sure where it is going??!? but I feel comfortable...
Did you put down 20%? Was this a conforming? Which state? What was the value of the loans?
I locked in a 4.875% with 0.7 points on a 417K loans. A little over 20% down (in order to drive my mortgage down to 417K conforming) in Florida. This was a couple of weeks ago.
I agree with the mortgage brokers. The rates are unpredictable.
Locked today on a $417000 refinace @ 4.5% with 1% origination fee and a 45 day "float-down" provision. Old rate was 5.75% from year ago February. Means an extra $320 per month to pay down 30 year mortgage earlier.
tbill: which bank did u use to get that low rate? I'm looking for the best deal on $417k purchase with excellent credit and >20% down. Wachovia showing 4.75 with 1% and HSBC showing 5.0 with 0 points
Everything is crazy right now... very difficult to predict rates. The fed is buying up mortgage backed securities and supposedly going to buy long term treasuries - which should lower rates, but at the same time the debt numbers being floated about lately are astronomical and that has caused yields on treasuries to rise, carrying mortgage rates with them.
The more I think about it the more I doubt the 4-ish% rates - who is going to want to buy that debt knowing that inflation will likely be a problem in a couple years. Then again, I guess the gov already buys most of it anyway via Fannie and Freddie, so I suppose we're all really just getting loans from the gov.
Trying to predict these things is voodoo - only something big and obvious can you predict, and even then it tends to be short lived.
Fant: This is a refi from Wachovia. Loan officer called me on Wed. afternoon with 4.5% rate and it held on Thursday thru noon. I don't know what the rates were after that. The published rate sheet on the internet never did show 4.5%, so I think you have to work with a loan officer. I had my information forwarded to her previously, so all I had to do was give the OK to lock whenever I felt the time was right.
Rates my go lower (hope so-as I have a "floatdown" provision) but 4.5 is a great rate historically.
tbill: I do have a loan officer with Wachovia but he never quoted me anything lower than what i saw on their published website. Wonder how i can get that. Look like you are getting it for a quarter point less.
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