Home Mortgage Interest Rates

Discussion in 'After Hours Lounge (Off Topic)' started by BrettB, Jul 23, 2003.

  1. BrettB

    BrettB Producer

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    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?
     
  2. ken thompson

    ken thompson Second Unit

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

    Ryan Spaight Supporting Actor

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

    Ryan
     
  4. Philip Hamm

    Philip Hamm Lead Actor

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    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. [​IMG]
     
  5. Philip_T

    Philip_T Supporting Actor

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    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
     
  6. Kirk Gunn

    Kirk Gunn Screenwriter

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    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 !
     
  7. MikeAlletto

    MikeAlletto Cinematographer

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    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).
     
  8. Mark Fontana

    Mark Fontana Stunt Coordinator

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    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.
     
  9. BrettB

    BrettB Producer

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  10. Patrick Larkin

    Patrick Larkin Screenwriter

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    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.
     
  11. David McGough

    David McGough Second Unit

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    Here in TENN on Friday Im closeing a 150K refi for 15years fix
    @ 4.875...This is with my bank no points or orig fee.
    I could pay points to get down to 4 1/2.
    I took the above.
     
  12. SteveA

    SteveA Supporting Actor

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  13. Scott Merryfield

    Scott Merryfield Executive Producer

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    I always lock in the rate when we refinance. We only refinance when the rate deduction is attractive enough anyway, so I prefer the piece of mind of not worrying whether the rates will go up or down before closing.

    "The devil you know is better than the devil you don't know."
     
  14. ken thompson

    ken thompson Second Unit

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    Here is what to look for. Long-term rates are almost completely independant of short-term rates. Don't decide wether to lock or not based on what you think the Fed is going to do to short-term rates. What you need to watch is is the mood of the stock market. Mortgage rates on homes fluctuate based on supply and demand. Conforming home mortgages are readily salable securities in the open market. They are deemed very low risk by most investors. If the stock market is doing well, investors will invest in equities to earn a higher yield. Rates on home mortgages then go up because of the pressures of lower demand for that type of investment. If the market is doing poorly, people put their money is these "low risk" mortgage backed securities. This increased demand for mortgage backed securities drives the rates lower. Same principal for corporate bonds and US treasuries.

    Besides, rate locks dont cost anything. If rates go down you can tell them to either give you the lower rate or you will go elsewhere. It's really a moot point.
     
  15. Patrick Larkin

    Patrick Larkin Screenwriter

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  16. Dick Smyrak

    Dick Smyrak Auditioning

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    I'm closing early next week. I missed 4.37 by one day and got a free floating down 60 day lock at 4.50. From an 8.00 it was a god-send!
     

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