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Mortgage rates climbed in the last few days, so the offered rate went up to 5.750% Thats still a great rate to us since the rate on our current mortgage is 5.875% We went ahead and locked 5.750% in until January 8th. We get to change the rate once, so if it does go lower closer to the time of purchase we can lower it. Atleast it wont go higher. The 5.625% quote was on 11/1/07, so that would have given us an exp date between Christmas and New Year, otherwise we would have jumped on it.
Mortgage rates climbed in the last few days, so the offered rate went up to 5.750% Thats still a great rate to us since the rate on our current mortgage is 5.875% We went ahead and locked 5.750% in until January 8th. We get to change the rate once, so if it does go lower closer to the time of purchase we can lower it. Atleast it wont go higher. The 5.625% quote was on 11/1/07, so that would have given us an exp date between Christmas and New Year, otherwise we would have jumped on it.
LOL about the Damn Husband Comment. It means dear or darling husband. Most of the time he is darling or dear, definately damn sometimes as well
Good Faith Estimates arent worth the paper they're printed on.
Quote:
Originally Posted by MammaLakn
Mortgage rates climbed in the last few days, so the offered rate went up to 5.750% Thats still a great rate to us since the rate on our current mortgage is 5.875% We went ahead and locked 5.750% in until January 8th. We get to change the rate once, so if it does go lower closer to the time of purchase we can lower it. Atleast it wont go higher. The 5.625% quote was on 11/1/07, so that would have given us an exp date between Christmas and New Year, otherwise we would have jumped on it.
LOL about the Damn Husband Comment. It means dear or darling husband. Most of the time he is darling or dear, definately damn sometimes as well
What do you mean with a buydown rate? As far as I know a buydown rate is where you have a low rate for the first year or two and then it increases. The rate of 5.625% is a 30 year fixed rate. It does include a point/fees etc. but thats part of our relocation package, its not coming out of our pocket.
We are also getting an additional discount bec we are existing customers with excellent credit/high score who are relocating. The rate is through Wells Fargo and we have it in writing.
We'll be calling tomorrow to lock in.
Thank you for the replies!
Unless I'm badly mistaken (I'm an "amateur" here, so someone should confirm), a buydown rate is where you "buy your interest rate down". It's a permanent thing.
So - you might find a 6.0% rate, with an option from your mortgage company to buy a .25% or .50% rate reduction (i.e. mortgage then becomes 5.75% or 5.5%). It's usually a few thousand bucks per .25%, so it's worth doing the math to see how far out the break even period is.
It tends to be a good deal if you plan on holding on to the house for a while (6+ years in my case), because you will pay less in the long run.
Unless I'm badly mistaken (I'm an "amateur" here, so someone should confirm), a buydown rate is where you "buy your interest rate down". It's a permanent thing.
So - you might find a 6.0% rate, with an option from your mortgage company to buy a .25% or .50% rate reduction (i.e. mortgage then becomes 5.75% or 5.5%). It's usually a few thousand bucks per .25%, so it's worth doing the math to see how far out the break even period is.
It tends to be a good deal if you plan on holding on to the house for a while (6+ years in my case), because you will pay less in the long run.
Generally, the mortgage companies charge a point (1% of the loan amount) for every .25% reduction in interest rate.
The breakeven point is 63 months. If you have the cash and you think you are going to be in the house for more than seven years, I would always recommend buying down.
Anyone care to predict what mortgage rates are going to do the next month or so?!
We are moving to NC next week. Our current mortgage company offered us a fixed rate of 5.625% on a 30 year conventional mortgage. Its a relocation rate and it includes 1 point which Dh's employer buys us as part of the relocation package.
Would you lock in that rate or wait a bit longer?
Thanks!
I'm at 5&3/8 ARM for 2more years and I would certainly take that!
Unless I'm badly mistaken (I'm an "amateur" here, so someone should confirm), a buydown rate is where you "buy your interest rate down". It's a permanent thing.
As with anything they offer different buydown options like 2-1 etc... A lot of them are NOT fixed for the life of the loan but give a very reduced rate for year one. The rate goes up annually until it reaches the original fixed amount which then becomes the rate for the remainder of the term of the loan.
We found a house and since mortgage rates declined we were able to lock in at 5.25 % / 30 yrs this morning.
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if you have not seen it.....
