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mortgage rates ...

rh71

rh71

No Lifer
We've applied for a mortgage last Thursday and chose to hold off on locking in the rate of 5.875% for 30-year fixed. The next day (Friday) and yesterday (Monday), it was at 6% and we believe it's at 6.125% today.

Would you lock-in before it goes up even more? There are factors like potential war and the upcoming release of earnings reports THIS WEEK.

Lock in now or wait till it dips again? Thx.
 
If anyone could tell with with anykind of authority what the rate will do in the next week I doubt they would be posting here.😉

I had the same problem when I was buying my house I was unsure what to do. I accually locked in to soon and took a 1/4 hit which in reality was not enough to worry about.

Trying to guess what the rates will do is like trying to guess what the stock market will do. I can tell you that typically when the stock market declines the morgage rates drop which is do to people invedsting in morgages. as opposed to stocks
 
I can understand that... let's forget about predicting what's going to happen this week... what would YOU do in this case? 😉
 
Originally posted by: tm37
If anyone could tell with with anykind of authority what the rate will do in the next week I doubt they would be posting here.😉

I had the same problem when I was buying my house I was unsure what to do. I accually locked in to soon and took a 1/4 hit which in reality was not enough to worry about.

Trying to guess what the rates will do is like trying to guess what the stock market will do. I can tell you that typically when the stock market declines the morgage rates drop which is do to people invedsting in morgages. as opposed to stocks
Click to expand...

The specifics of the movements are when money moves into securities bond rates increase because of less money supply available for use. Conversely, when money moves out of equities and into bonds, rates decrease from the new influx and avialability of capital. Its money supply and money demand.

I think interest rates are going to be cut again by the feds because the economy sucks so bad.

-PAB
 
Man, you should've locked in at 5.875%...

I'm not going to give you advice as to when you should lock in, but my wife and I locked in at 6% just recently. Everyone and their dog is refinancing, so we're waiting and waiting and waiting for the appraisor to do his thing before we can close.
 
How much are you borrowing what is the risk/reward?

IF you are borrowing 100K your payment is 608 @ 6 1/8%

Your payment Dives to 592 @ 5 7/8%

IT is only a savings of around 15 bucks.

Do You think the rates will jump 1 point or more and the risk there is a payment of 656 @ 6 7/8% or 50 bucks a month.

By locking in you eliminate that risk BUT you will lose the possibity that the rates will drop, which they may.

IF IF WERE ME (and you are not me) I would set a high level (what you can afford) and a low level. Asstablish YOUR abiltiy to take the loss if need be.

If it hits the high OR the low you lock.

Have you found a house yet or are you just trying to get approved?

I would hold off untill the you atleast find the house and keep an eye on the rates. IF they drop THEN LOCK IN.

However my track record is bad because as I stated I lost when I gambled.
 
Originally posted by: PsychoAndy
Originally posted by: tm37
If anyone could tell with with anykind of authority what the rate will do in the next week I doubt they would be posting here.😉

I had the same problem when I was buying my house I was unsure what to do. I accually locked in to soon and took a 1/4 hit which in reality was not enough to worry about.

Trying to guess what the rates will do is like trying to guess what the stock market will do. I can tell you that typically when the stock market declines the morgage rates drop which is do to people invedsting in morgages. as opposed to stocks
Click to expand...

The specifics of the movements are when money moves into securities bond rates increase because of less money supply available for use. Conversely, when money moves out of equities and into bonds, rates decrease from the new influx and avialability of capital. Its money supply and money demand.

I think interest rates are going to be cut again by the feds because the economy sucks so bad.

-PAB
Click to expand...

Yes but the fed cutting rates can drive Mortgage rates up:Q This is due to the fact that it stimulates the stock market (or is beleived to stimulate the stock market😉)

 
We got lucky and refinanced a couple weeks ago at 5.875%. IF I had been able to get in touch with our broker before their office closed that day I could've had 5.75%. Oh well. We're saving over $200 a month now off a house we bought just 2 years ago so I really can't complain all that much.

I wouldn't be surprised if they dipped down to around 6% again. Could you possibly pay any points to help get the rate where you want it to be (assuming you're going to be in the house for awhile?)
 
Originally posted by: tm37
How much are you borrowing what is the risk/reward?
IF you are borrowing 100K your payment is 608 @ 6 1/8%
Your payment Dives to 592 @ 5 7/8%
IT is only a savings of around 15 bucks.
Do You think the rates will jump 1 point or more and the risk there is a payment of 656 @ 6 7/8% or 50 bucks a month.
By locking in you eliminate that risk BUT you will lose the possibity that the rates will drop, which they may.
IF IF WERE ME (and you are not me) I would set a high level (what you can afford) and a low level. Asstablish YOUR abiltiy to take the loss if need be.
If it hits the high OR the low you lock.
Have you found a house yet or are you just trying to get approved?
I would hold off untill the you atleast find the house and keep an eye on the rates. IF they drop THEN LOCK IN.
However my track record is bad because as I stated I lost when I gambled.
Click to expand...

We gambled with the 5.875 rate and are losing. We're simply trying to wait for it to go back down to that figure (and not any less). I think we're setting our ceiling at 6.25% (might be today's rate) but it would suck if it jumps over that figure and we miss the boat. We are in-contract on a house and applied for a mortgage amt of 264k. Calculations from a 5.875% vs. 6.00% rate did bring our monthly mortgage payment to only about $20 more... so it's not a huge deal I guess. I am going to try my damndest to lock-in today... I hate gambling... period. It's just that 5.xx% sounds so much more appealing. 😉
 
Originally posted by: rh71
Originally posted by: tm37
How much are you borrowing what is the risk/reward?
IF you are borrowing 100K your payment is 608 @ 6 1/8%
Your payment Dives to 592 @ 5 7/8%
IT is only a savings of around 15 bucks.
Do You think the rates will jump 1 point or more and the risk there is a payment of 656 @ 6 7/8% or 50 bucks a month.
By locking in you eliminate that risk BUT you will lose the possibity that the rates will drop, which they may.
IF IF WERE ME (and you are not me) I would set a high level (what you can afford) and a low level. Asstablish YOUR abiltiy to take the loss if need be.
If it hits the high OR the low you lock.
Have you found a house yet or are you just trying to get approved?
I would hold off untill the you atleast find the house and keep an eye on the rates. IF they drop THEN LOCK IN.
However my track record is bad because as I stated I lost when I gambled.
Click to expand...

We gambled with the 5.875 rate and are losing. We're simply trying to wait for it to go back down to that figure (and not any less). I think we're setting our ceiling at 6.25% (might be today's rate) but it would suck if it jumps over that figure and we miss the boat. We are in-contract on a house and applied for a mortgage amt of 264k. Calculations from a 5.875% vs. 6.00% rate did bring our monthly mortgage payment to only about $20 more... so it's not a huge deal I guess. I am going to try my damndest to lock-in today... I hate gambling... period. It's just that 5.xx% sounds so much more appealing. 😉
Click to expand...

Just remember after you lock it DONOT LOOK AT THE RATES:Q They can make you very upset, I know😉

Good luck and welcome to the wonderful world of home ownership;D

I get to replace a wax ring underneath the tolet today🙁

 
Originally posted by: tm37

Just remember after you lock it DONOT LOOK AT THE RATES:Q They can make you very upset, I know😉

Good luck and welcome to the wonderful world of home ownership;D

I get to replace a wax ring underneath the tolet today🙁
Click to expand...

Actually, now that I see rates have gone up since we refinanced it makes me feel that much better 😛 Sucks for rh71 though and his mortgage is more than ours too so he could realize even more savings. 🙁

Have fun replacing that toilet ring 😉 I just fixed our washer, recaulked the master bathroom and fixed the downstairs toilet this past weekend. Now all I've got left to get to is the busted garage door opener and repaint the ceiling upstairs where the attic condenser leaked onto it before we had that replaced. Yeah, welcome to home ownership *evil laugh* Go ahead and buy your copy of the 'Money Pit' now.

 
I'm buying this place along with my fiance and we're both under 26. It's our first place of our own (better than renting and losing money)... and we are ecstatic about owning a place. We're both prepared to lose our life savings and live off every paycheck from here on out. 😉 You can't bring us down! Unless you tell me the rate is at 6.5+% right now. 😉
 
I locked in @ 6.75 5 years ago to bad we got divorced Now I am renting a $hitty apartment and paying alimony so she can afford the house 🙁

Ausm
 
Originally posted by: tm37
How much are you borrowing what is the risk/reward?

IF you are borrowing 100K your payment is 608 @ 6 1/8%

Your payment Dives to 592 @ 5 7/8%

IT is only a savings of around 15 bucks.
Click to expand...

Of course, it's 15 bucks monthly over a lifetime of 30 years (although the truth is probably closer to 7 to 10, depending on how long you keep the house). But I'm a firm believer in going for slightly higher monthly payments in the form of accelerated payments to accrue additional equity and reduce the total interest over the lifetime of the mortgage, anyway.
 
rh71, see this thread where I told you on 9/27 to lock then.
As I said then, "I could go on for days and days about the pros and cons (and outright dangers) in mortgage shopping... "
Trying to catch the "best of market" is a fool's game, it never happens even though God knows I see customers who always try.
Rates might go back down, or they might shoot up to 8%. No one knows. What no one knows even more is why you continue to gamble on your dream house.
 
Originally posted by: PSYWVic
rh71, see this thread where I told you on 9/27 to lock then.
As I said then, "I could go on for days and days about the pros and cons (and outright dangers) in mortgage shopping... "
Trying to catch the "best of market" is a fool's game, it never happens even though God knows I see customers who always try.
Rates might go back down, or they might shoot up to 8%. No one knows. What no one knows even more is why you continue to gamble on your dream house.
Click to expand...

We didn't receive the signed contract back until last Tuesday, so we couldn't have (shouldn't have) locked in any sooner than that. Like I said, I hate gambling... but the fact of the matter is I'm not the only one who has control of this decision. So short of outright saying it's my ______'s fault for not locking in earlier, I'm making the best of the situation. I was ready to lock in at 6% on Friday.

BTW, I appreciate your advice, PSYWVic, even though I didn't go back to read it in that thread till now.
 
Originally posted by: rh71
Originally posted by: PSYWVic
rh71, see this thread where I told you on 9/27 to lock then.
As I said then, "I could go on for days and days about the pros and cons (and outright dangers) in mortgage shopping... "
Trying to catch the "best of market" is a fool's game, it never happens even though God knows I see customers who always try.
Rates might go back down, or they might shoot up to 8%. No one knows. What no one knows even more is why you continue to gamble on your dream house.
Click to expand...

We didn't receive the signed contract back until last Tuesday, so we couldn't have (shouldn't have) locked in any sooner than that. Like I said, I hate gambling... but the fact of the matter is I'm not the only one who has control of this decision. So short of outright saying it's my ______'s fault for not locking in earlier, I'm making the best of the situation. I was ready to lock in at 6% on Friday.
Click to expand...

My apologies if I seemed a little harsh. Bear in mind that it is out of concern. That and the fact that I have quite a few customers who have refused to lock in (despite my warnings) who I now have to tell that the rates have gone up. Doesn't exactly make for a happy day for me.

 
Originally posted by: PSYWVic
Originally posted by: rh71
Originally posted by: PSYWVic
rh71, see this thread where I told you on 9/27 to lock then.
As I said then, "I could go on for days and days about the pros and cons (and outright dangers) in mortgage shopping... "
Trying to catch the "best of market" is a fool's game, it never happens even though God knows I see customers who always try.
Rates might go back down, or they might shoot up to 8%. No one knows. What no one knows even more is why you continue to gamble on your dream house.
Click to expand...

We didn't receive the signed contract back until last Tuesday, so we couldn't have (shouldn't have) locked in any sooner than that. Like I said, I hate gambling... but the fact of the matter is I'm not the only one who has control of this decision. So short of outright saying it's my ______'s fault for not locking in earlier, I'm making the best of the situation. I was ready to lock in at 6% on Friday.
Click to expand...

My apologies if I seemed a little harsh. Bear in mind that it is out of concern. That and the fact that I have quite a few customers who have refused to lock in (despite my warnings) who I now have to tell that the rates have gone up. Doesn't exactly make for a happy day for me.
Click to expand...

Understood (again, thx)... it's great you're giving the advice to your customers whereas our mortgage guy left it completely up to us. They (you) have to be careful too if the rates do drop and the customer comes back and lashes out at you. 😉
 
Lock at 6.25, then buy down to 6%.

That will cost you about a half a point or 1,315 assuming you are going with 100% financing. That is a savings of $42/month. You will have this returned after about 31 month, which I assume you will still be living in the house after 2.5 years. Also, that half a point is tax deductible in the year you pay it, so if your tax bracket is 25%, then you will returned about $325 this year.

If the half a point buydown is wrong then just adjust the numbers for the correct point reduction amount, I believe it varies from underwriter to underwriter.

Additionally, are you locked in with this mortgage lender? If not, check around, maybe you can find someone who is offering slightly less rate or much lower closing costs.
 
Originally posted by: rh71
!*&^$*!@$ 6.25%
Click to expand...
This makes me feel both good and bad. Good = we locked in 2 weeks ago @ 6.00% on a 30-year refinance. Bad = I was hoping that the rate was going to drop lower before our closing in 2 weeks.
 
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