What moves refinance mortgage rates? NASDAQ
When the European economy was threatened by instability in Greece and other countries, investors worldwide turned to American bonds as safe investments; that helped lower U.S. interest rates.
Mark Greenberg of Wealth & Tax Planners in Walnut Creek, Calif., says, "Long term rates are set by the 'market' (traders, banks, etc., i.e. the participants' collective wisdom about where rates should be). Mortgage rates, he explains, tend to follow the rates on 1, 5 and 10-year Treasury notes.
"As demand pushes bond prices up, they cost more, so they yield less (investors pay more for the same dividend amount). The converse is also true."
The Fed
Reading the financial news, it's easy to think that if your mortgage rate went up, it's because the Fed "raised" interest rates. That's simply not the way it works.
Savings institutions are required to maintain a certain level of deposits, called reserves, with the Federal Reserve Bank, to make sure that there is money to pay depositors when they want it. The Fed supervises overnight loans of these reserves from one bank to another to cover fluctuating needs for cash.
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Refinance to a Low Mortgage Rate in Spring, The Woodlands, Tomball, Conroe ...
www.hlstx.com Whether buying a home or refinancing your current mortgage, homeowners in Spring, Tomball, The Woodlands and Houston, Texas can find ...
Should I refinance my home mortgage if the current fixed rate is a full 1% less than my current fixed rate?
The current rate is 5.6% and my current mortgage is 6.6%. I got the mortgage 2 years ago.
Conventional Wisdom says yes. It will boil down to the costs. If you can finance the refi costs into it, how long will it take to pay that portion off based on the savings? If the time is less than the time you plan to own your home than yea refi, if not then don't.
If you could do the refi with no costs, the answer would be an emphatic yes, but with the agencies required net yields where they are no one is making money at 5.6 on a 30 year today so, therefore, they have to charge fees in addition to all of the 3rd party costs, closing, recording and general title insurance.
For example, if you owed 100K and it costs 2K to refi and you financed those costs, you would borrow 102K and your monthly savings would only be about $52.
Divide the 2K cost by $52 savings and it takes you 38.462 months to break eve. Only after that point are you really saving money.
My bet is it will cost you $2,500 plus points (how many depends on your loan size and how much or little the lender is willing to make).
My advice would be the costs are usually not justified if they are substantial. Yesterday, I could have done a refi for $350 at 6.25, but it would be hard to get excited about that. On the other hand, the payback period is very short so it is a better deal for most people.
I hope you find this information helpful in making your decision.
Can I refinance my current mortgage with the same company I'm with now for a lower rate after 2 years?
Would like to know if I would have to pay the prepayment penalty if I'm staying with the same company.
If you have a fixed-rate, closed mortgage you will need to pay some type of penalty with most lending corps or banks if you change your mortgage before its term is up. You might be able to get an exception if your are in serious trouble to make payments since lending groups don't like bankruptcies or foreclosures. You should just approach your mortgage broker, they will be able to give you an exact number and you can make a decision. If it's going to pay in the end, go for it.
Should I refinance current mortgage w/ a 2 Part HELOC & will it's structure negatively affect my credit score?
Over a 15 yr period, does it hurt a credit score to have a 2-tier HELOC product whose 1st mortgage (refinance) is being paid down consistently, BUT the equity gained is immediately & automatically being transferred to the HELOC revolver (emergencies) to incr. the revolver’s credit limit? This 2-tier HELOC linking process (term loan & revolving loan) would cause my ‘potential available debt ’ to remain at the same level for the entire 15 years & perhaps affect my credit score. For example, if I borrowed $68,000 over 15 years comprised of $60,000 (HELOC refinancing first mortgage) & $8,000 (HELOC revolving/misc), then throughout the loan's history the $68,000 would be recorded as my maximum potential available debt on this loan. And, although each month I would be reducing the balance on the HELOC term portion, the equity gain is really just a redistribution of debt, b/c now my revolving line is increased. Eventually, the revolver will be $68,000. There are no closing costs just $50 each to lock both traditional and revolving portions, and $50 annual fee for revolving portion beginning in year two. And the current lock rates are 5.875% traditional portion and 5.75% revolving portion
heres a list of few things that do affect your score..
- late or no payments
- minmum aren't great either i always suggest to make more..
- many credit check in short period of time by creditors offcourse (you yourself can check as many time as u want) the reason it lowers is that you lose 12 pts every credit check so if for exemple if for your increase of homeequity loc they have to go wit full apl than yes it would, but on home equity because its secured debt it shouldnt..
- too many loans credit card..(debt ratios is high)
this is not exactly a direct answer to you in specially but it should help a little
Try out the following site it is packed full of articles, tips, resources and links you can use for all of you’re mortgage needs.
Thanks
http://www.good-mortgage-advice.info
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My husband and I just got approved for a refinance with our mortgage. Our current mortgage rate is %6.37 and w
My husband and I just got approved for a refinance with our mortgage. Our current mortgage rate is %6.37 and we were approved for a lower rate of %5.75 locked in for 30 years. I just found out today that the Feds are going to make another cut of one half of a percentage point Jan. 29th-30th. We are in doubt as to what decision to make. We already locked it in at %5.75 but there is still time for us to jump out. Should we go with it or wait until the next Fed cut and get a better deal? Someone please help!!!
Any Fed rate cut will not affect long term mortgage interest rates. While it is possible to get a lower rate than you are locked at currently, I don't have all your details to know what you qualify for, so I would say that you should keep what you have; 5.75% is still a great rate.
can you afford the 5.75% comfortably?
like most things you pays your money and you take your chances.
i am one of those who believes a bird in the hand........
in short there is no way i can make this decision for you.
you still have to make the payments.
Now that you are locked in at today's rates. Do you unlock it and take a chance to see if it get lower? What would happen if it goes up instead? Your locked in today and maybe not tomorrow.
Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advice, its advertising). Don't buy "it."
How much should your current interest rate ( existing Mortgage) change, before it makes sense to refinance?
My current rate is 6% for 15 years. I want to re-fi at 5 % for 10 Years (4,500 in closing fees), but I have been paying on this current mortgage for 9 years, so currently I am past paying all interest. So does it make sense to re-fi and start all over gain with several years of just paying interest.?
6% is not bad. I wouldn't do it just because of the 5 grand out of pocket also you only have 6 years left. your almost paid off don't extend it any more.
Refinance current mortgage?
Hi I have a mortgate of around 2 years old and is a 30 year fixed rate at 6.5%. With interest rates being slashed right now and house prices dwindling it would make a lot of sense to be able to refinance the mortgage at a much reduced rate, lower the monthly premium but still pay (ie overpay) the same amount each month to the mortgage company thereby paying of the principle faster and possibly ending up in a few years time with some equity back in the home. If I leave it as is the market is going down as fast as I'm paying off the principle and am therefore no close to actually owning my home. The other alternative to over paying is refinancing at a 15 year fixed rate loan as that seems to be giving me around the same monthly payment as I'm paying out now.
But the question is, with no equity in the house will my current (or even another) mortgage lender even look twice at refinancing (I understand that lenders are reluctant to give out loan to value ratios of higher than 70-80%)
thanks
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current lowest mortgage refinancing rate temp. offered by Fed. govt?
rate offered mainly to homeowners in trouble
With the Fed cutting rates, is this a good time to refinance my mortgage? My current rate is fixed at 6%?
Shop around.
Otherwise, closing costs will eat up your savings.
http://www.daveramsey.com/etc/askdave/?intContentId=6319
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What kind is your mortgage? Conforming, than you are really paying too much already, as this is now about the rate for a Jumbo. I have seen offers around 5.5%.
However rates differ within states and also depend on your credit rating.
What I am not sure about are the costs with refinancing.
I would ask the bank or managers what fees, taxes and costs will occur. Do you have to pay a "Mortgage recording tax?" Do you have to pay a lawyer again?
Make your decision after you have all the numbers on the table.
Do not check with one place alone. Check rates with reputable banks and mortgage brokers. Do not buy ARMs.
-> A friend of mine got a rate through a mortgage broker from a bank that was much higher, than if he would have gone to the bank directly.
I contacted few mortgage companies and inquired for '0 points and no closing' rates. Until yesterday, lowest I was getting was 5.5% (they went up today to 5.875%).
Here is what I would do - write down the loan and payments you are making today (per month).
Next call the mortgage companies and have them run a scenario (total loan, 30 fixed, 0 points, xyz credit) and ask them the cost breakdown (per month). You can then compare it with what you are paying today.
If you have the loan for a while, refinance will reset your time to 30 years from 'today'. So you will obviously have bit longer to pay off. However, because the principal in mortgage payments is generally very small, few years do not really matter (for most).
I haven't refinanced yet. Will sit on it for few more days. When I do, I will try to make a deal with them that if the rates went down within few days (30 or so), then they will entertain the lower rate.
In any case, make sure they do not slap additioal cost/ fees on you. Get that in writing/ confirmation email etc...
Why aren't mortgage rates going down despite the Fed rate cut?
We would like to refinance our current mortgage and I was hopeful that the result of the Fed rate cut would be a drop in the mortgage rates. However, it seems like mortgage rates only dropped by about 1/4 % point (I was hoping to go down to about 5% on a 30 year fixed rate with no points with an excellent credit score). What determines whether mortgage rates fall and how much?
Fed rates are only very short term loans from one bank to another.
30 year mortgages are loaned based on long term data. What does the investor believe the inflation rate will be over the next 7 to 10 years (the life of most loans before they are paid off).
If the fed rate cut leads lenders to believe the inflation rate will be low then they will lend at lower rates. They use long term bonds and other data to guess at this.
Where can I find the current mortgage rate in Oregon?
I'm going to refinance my house and I heard from friends that this coming week the mortgage rate will drop a bit.
When I called a broker last week, she said that the lowest mortgage rate was 6.5. But I believe this week will be lower.
My question is does anybody know a good website, free and without signing up, that shows current day to day mortgage rate.
I live in Portland, Oregon.
In your opinion, how would the mortgage rate would be this coming month and beyond.
Thanks
I have seen some links to free current rates at www.bestmortgageanswers.info
The rates will probably change again on Tuesday, so make sure to check back after that.