Home Mortgage Interest Rates

BrettB · 07-23-2003, 12:02 PM

We're refinancing. Just FedX'd the paperwork back to them this morning. Should hear back from them in the next couple of days at which point I'll have the option to lock the rate or I can let it "float" for a couple of weeks or so.

So, any financial gurus out there have any idea what the best plan would be, lock it up as soon as I can or gamble on it dropping?

ken thompson · 07-23-2003, 01:01 PM

I'd lock it. Rates are already heading back up.

Ryan Spaight · 07-23-2003, 02:14 PM

Yes, they've gone up a few times in the last couple weeks.

Ryan

Philip Hamm · 07-23-2003, 02:59 PM

Right now is the end of the peak buying season. Yesterday I looked at the historical values of morgage rates for the last five years. Almost every year rates go down in the fall. If you've buying RIGHT NOW, you may want to lock, as they'll probably head up a bit before coming back down. If you can wait a few months, do so.

Historical values for interest rates.

disclaimor: past performance does not guarantee future trends.

Philip_T · 07-23-2003, 03:44 PM

I'm no financial guru, but I'm currently buying a new home and I am at the phase right now where I can lock in now, or wait a few days/weeks myself. I wish I could have locked in last month, but thats life and we hadn't even sold our house then. Iv'e been watching the rates lately and for the most part, they seam to be going up, except for today where my lender said the loan I was looking at dropped 1/8th percent. Additionally, there's an article at cnn.com that says the Feds may cut the rate to 0 in the future when they meet next (Aug 12th I think). Now that may or may not effect the mortgage rates as they may be anticipating another rate cut. So its got me thinking that I should wait a few days. Plus, if I wait till Monday, I would only be in a 30-day lock vs a 45-day lock which could mean another 1/8th % reduction. Either way, its got me stressing out. I hate this part of buying a house.
Phil

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Kirk Gunn · 07-23-2003, 04:49 PM

We just signed the refi paperwork last night. 30 yr ARM that's fixed for 10yrs at 4.35% w/1.5 points. In 10 yrs our daughter will be 20, and we are outta here ! Gonna get a townhouse with a boatslip. Wife gets the townhouse....

Good Luck !

MikeAlletto · 07-23-2003, 06:21 PM

Even if the feds do cut the rates it takes a few weeks (or even months) for it to trickle down. The rates aren't your rates their the rates at which banks borrow money (from what I understand, but then again I could be completely wrong).

Mark Fontana · 07-23-2003, 06:38 PM

If you're refinancing, don't forget to ask your current lender if they can make you a streamlined offer to keep your business (saving a lot of paperwork and hassle).

I recently had a good experience with Wells Fargo's version of such a program; they call it a "rush on-demand refinance". You call, they give you a few rate/term options, you pick one, and a few days later they ship you two "Close At Home" packets and a prepaid return mailer. You sign Wells Fargo's copy, have it notarized, and send it back. No application fee, no closing appointment, no points, no appraisal, no closing costs (title insurance etc. is covered by Wells Fargo). It saved a lot of time.

BrettB · 07-23-2003, 07:47 PM

Quote:

Even if the feds do cut the rates it takes a few weeks (or even months) for it to trickle down. The rates aren't your rates their the rates at which banks borrow money (from what I understand, but then again I could be completely wrong).

Well, the way the guy explained it to me is that the mort. int. rates are pretty much dependant on what the 10 yr. T-Bill is doing.

My wife kept telling me to hurry up and get this process going and I procrastinated a little thinking "what's the hurry? The Fed just lowered the rate. It's not going up for a while?" Doh! :b

The guy said that the mort. int. rates started going up after the last rate reduction by the Fed because everyone was disappointed that it wasn't larger.

Apparently, within the last month or so when the rates were at their lowest I think, he said they just sat there and didn't change for couple of weeks or so. Now they're inching up.

So I really need someone to get out their crystal ball and help me catch an 1/8 or 1/4 dip and get me out of the doghouse.

Patrick Larkin · 07-23-2003, 09:51 PM

We'll be settling on a new house in November. Hopefully, nothing drastic happens before then. The further out you lock, the higher the rate. You -can- get a 6 month lock but we passed.