30 Year Mortgage Rates Today
Mortgage interest rate. Should I lock now?
I applied for a mortgage today and got a rate of 6.0% if I lock today (I still do not). This is a 30 year / fixed, 20% deposit and I have to pay down 2.75 points to get that rate. There is no extra fee for it if I unlock the 30 days out. But I'm still 50 days out. 45 days out I have to pay 1 / 8 of a point, and for 60 days beyond 1 / 4 of a point. My question is, should I lock now because the rate good, or should I wait and risk a rate increase. Any ideas would be greatly appreciated. Thanks
I will hold out for a week or two. Right now, something that is not A + paper, which means Fannie Mae / Freddie Mac or even FHA / VA (since they are guaranteed by the government) will be wiped out. There are still a ton of money being invested in bonds. But they are only buying the lowest risk, highest-quality issues. Then U.S. Treasury bonds and that the said mortgage bonds have a high demand. High demand pushes prices down, as you can offer a lower rate for a person who really wants to buy it. (And if nobody wants to buy your bond, , increasing the rate it pays, it will help get interested buyers). Within a few weeks, this should settle out, to a certain extent. Meanwhile, First mortgage rates have been declining gradually for the past week or so, and we're probably not finished yet. Although it remains the same in 2 weeks, it save you 0.125%. For what it's worth, they offer you get is very fair, based on today's prices. But I must ask: How long have you planning to stay in this home, or even this loan? Most loans only last 5-7 years before paid off through a refinancing or sale. It usually takes 5-7 years before you break even on paying points. Has your loan officer show you the break-even period? Are you sure you end up actually benefiting from these points to pay in advance? If your loan officer has trouble finding out your breakeven period, I'd consider a good sign maybe find a new one.