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Old 09-20-2007, 11:35 AM
 
1,054 posts, read 3,683,043 times
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Just a newbie question about rates- when a 30 yr fixed rate figure is mentioned (on this board or in the general media), what does this rate signify? Is it the average rate across all lenders? Median rate? Lowest rate you can get if you have perfect credit? Or something else?
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Old 09-20-2007, 11:40 AM
 
Location: California
510 posts, read 3,060,085 times
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Quote:
Originally Posted by Go Blue 99 View Post
Just a newbie question about rates- when a 30 yr fixed rate figure is mentioned (on this board or in the general media), what does this rate signify? Is it the average rate across all lenders? Median rate? Lowest rate you can get if you have perfect credit? Or something else?
The most common mention of an actual 30 year fixed rate has to do with what a current rate would be for a well qualified borrower. This mention of rate will stem from non industry people's internet research of averages, and industry people's direct observation of rates offered daily.

So, if you don't have great credit with provable income, 99% of the time when a rate is mentioned it won't apply to you. There's so many variables within a loan application that can have an effect on the rate and costs, that we never really make general mention of anything but the best rates. Many people will give an estimate based on someone providing multiple variables though...
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Old 09-20-2007, 04:16 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,624,465 times
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a good place to check out what borrowers are actually getting

Freddie Mac's Homepage


Quote:
Originally Posted by Go Blue 99 View Post
Just a newbie question about rates- when a 30 yr fixed rate figure is mentioned (on this board or in the general media), what does this rate signify? Is it the average rate across all lenders? Median rate? Lowest rate you can get if you have perfect credit? Or something else?
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Old 09-21-2007, 11:34 PM
 
Location: Sandpoint, ID
3,110 posts, read 9,872,474 times
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It helps with construction financing. We're building now, and it's a one-to-one drop on our construction loan. However, when it converts to a 30yr fixed, I don't believe it will have any positive effect on our rate from what I've been told.
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Old 09-27-2007, 05:13 PM
 
29 posts, read 132,898 times
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Default so banker9679 was right..

long term mortgage rates go up when fed cuts rates !!!?

Mortgage rates rise third week in a row - Sep. 27, 2007
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Old 09-27-2007, 05:21 PM
 
Location: Charlotte, North Carolina
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yep! i posted this a few weeks ago...and nobody believed me.

they thought i was cuckoo
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Old 09-28-2007, 07:53 AM
 
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I think some of the media is at fault, for assuming that the .5 rate cut would apply to mortgage rates too. The day of the cut, I heard one TV reporter say "with the .5 cut, homeowners will likely save $X per month on their mortgage payment".
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Old 09-28-2007, 07:54 AM
 
1,054 posts, read 3,683,043 times
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Originally Posted by kmurali70 View Post
long term mortgage rates go up when fed cuts rates !!!?

Mortgage rates rise third week in a row - Sep. 27, 2007
Great..so my potential interest rate rises, and my savings rate (ING Direct) drops. Hopefully at least SOME Americans are benefiting from the cut.
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Old 09-28-2007, 07:59 AM
 
Location: Grand Rapids Metro
8,885 posts, read 18,059,013 times
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Quote:
Originally Posted by Go Blue 99 View Post
I think some of the media is at fault, for assuming that the .5 rate cut would apply to mortgage rates too. The day of the cut, I heard one TV reporter say "with the .5 cut, homeowners will likely save $X per month on their mortgage payment".
Haha! Guess some of these reporters should have taken some business classes on top of their journalism major. I'm amazed at how many times they use the word "subprime" and then go on to report on lending practices that aren't subprime.
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Old 09-28-2007, 08:08 AM
 
Location: Charlotte, North Carolina
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yep it's all economics....and even if they didnt take economic classes....they should've at least look at history repeating itself.

you can look at the market charts from 5-10yrs ago
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