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We found a house and since mortgage rates declined we were able to lock in at 5.25 % this morning.
I just got my committment letter from my bank, fixed 6% at 30 years.. dont have the greatest credit so I'm extremely happy. Compound this onto the fact that I'm offering 70% asking price, and about 60% appraised price, my other home is paid off completely, and I'll be in very good shape if we get it closed.
Before Christmas bankrate claimed : "You might be a mortgage rate if you're heading up." They were wrong as they often are.
This week they're saying the same:
This week (Jan. 3 - Jan. 9) the experts say: Rates probably are headed up.
Down – 25%
Up – 42%
Unchanged – 33%
The 10yr bond is going up today. On the other hand, the FED's meeting is coming up on the 11th. Recently it appears that the cuts in the federal funds rate actually lead to the mortgage rates going up... Or the expected cut may be already priced in...?
When the FED lowers the rate this usually leads to a higher mortgage rate.
Yesterday the rates were awesome!
Quote:
Originally Posted by sierraAZ
Any fresh opinions on the subject?
Before Christmas bankrate claimed : "You might be a mortgage rate if you're heading up." They were wrong as they often are.
This week they're saying the same:
This week (Jan. 3 - Jan. 9) the experts say: Rates probably are headed up.
Down – 25%
Up – 42%
Unchanged – 33%
The 10yr bond is going up today. On the other hand, the FED's meeting is coming up on the 11th. Recently it appears that the cuts in the federal funds rate actually lead to the mortgage rates going up... Or the expected cut may be already priced in...?
most lenders are taking advantage of the situation and giving their borrowers 6%!!!
sounds like the Citi layoffs and the Merrill lynch losses will bring the house down
cnnfn and yahoo finance shows the rate at 5.70 for 30 yr fixed (least in this week). how can we get 5.625%. I am assuming 1 origination fee is a standard.
Today the 10yr notes yield went up from 3.89 to 3.92..So mortgage rates did not go down today
Last edited by darkblue; 01-03-2008 at 12:57 PM..
Reason: added extra info
You would need to find a broker....I'm checking bank websites (wells fargo, bofa) and i see it from 5.875%-6.00% with 1origination with maybe .125-.25 in discount points.
you would need to have at least 5% down...above 120k loan amount...and 700+ credit
Quote:
Originally Posted by darkblue
cnnfn and yahoo finance shows the rate at 5.70 for 30 yr fixed (least in this week). how can we get 5.625%. I am assuming 1 origination fee is a standard.
cnnfn and yahoo finance shows the rate at 5.70 for 30 yr fixed (least in this week). how can we get 5.625%. I am assuming 1 origination fee is a standard.
Today the 10yr notes yield went up from 3.89 to 3.92..So mortgage rates did not go down today
There is no "standard" origination fee. You can either pay one for a lower rate or not pay one for a higher rate.
Rates did go down today. As Banker said par rate today is 5.625%, so on a decent size deal ($200k+) you should be able to get about that rate by paying a 1% orig. fee/discount pt. Or, you could pay 0 points and probably get 5.875%.
There is no "standard" origination fee. You can either pay one for a lower rate or not pay one for a higher rate.
Rates did go down today. As Banker said par rate today is 5.625%, so on a decent size deal ($200k+) you should be able to get about that rate by paying a 1% orig. fee/discount pt. Or, you could pay 0 points and probably get 5.875%.
10yr. is flat right now and market is still open.
Is origination fee different from discount point?
When the 10 yr yield is not changed (at this moment its flat) how did the rates go down ( today 10 yr yield did not go down)?
origination fee is charge to originate or place your loan.
discount points is to lower your rate.
most lenders charge 1% origination as a standard.
discount points is optional.
There is clearly a distinct difference. If par rate is 5.625% on FHA..and you give the borrower 6% AND charge "discount points" then that is against the FHA guidelines. Charging an origination fee on a FHA loan with a higher interest rate is allowed.
Lenders change their rates about 9am or 11am.
They normally dont change their rates after UNLESS there is a huge difference in the market.
Yesterday's rate was 5.5% after the huge drop in the market.
This morning it went up to 5.625%
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They were wrong as they often are.
