Comments on: What charts can I look at online to predict changes in mortgage interest rates? http://MORTGAGEBASICS.INFO/what-charts-can-i-look-at-online-to-predict-changes-in-mortgage-interest-rates/ Tue, 22 May 2012 01:18:34 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Dale H http://MORTGAGEBASICS.INFO/what-charts-can-i-look-at-online-to-predict-changes-in-mortgage-interest-rates/comment-page-1/#comment-8557 Dale H Wed, 30 Nov 2011 08:13:16 +0000 http://MORTGAGEBASICS.INFO/what-charts-can-i-look-at-online-to-predict-changes-in-mortgage-interest-rates/#comment-8557 You may have missed the boat if you were hoping rates would go lower. These rates represent what freddie macs investors require and are darn near what a "PAR" rate would be. That is, nobody is going to make money at these rates unless you are paying points/fees for the rate in addition to the regular closing costs: http://ww3.freddiemac.com/ds1/sell/sffrny.nsf/frmDisplayRNY?OpenForm This link updates daily with advice on the mortgage market. http://www.moving.com/mortgage/mortgage-market-commentary.asp All indications are to lock as of Friday the 6th. We have a convertible 1/1 ARM special that runs through the 23rd @ 3.99 with caps of 2/2/6. That means the worst case average rate over 3 years would be 5.99. APR is 5.293 (this is based on the fully indexed rate). All this with about $ 300 in closing costs. The point of mentioning this is that the convertible ARMS are a favorite of people who expect that rates may head lower by the end of the year. You can convert the ARM to a fixed rate any time after the 1st payment and within the 1st 36 months for $ 200 plus some other fees for the modification (e.g. recording, etc.). These programs require better credit and full income verification and a 680 middle score at the time of conversion. Ask your lender to see if he has any such options for you. Good luck and congratulations on your new home. You may have missed the boat if you were hoping rates would go lower. These rates represent what freddie macs investors require and are darn near what a “PAR” rate would be. That is, nobody is going to make money at these rates unless you are paying points/fees for the rate in addition to the regular closing costs:

http://ww3.freddiemac.com/ds1/sell/sffrny.nsf/frmDisplayRNY?OpenForm

This link updates daily with advice on the mortgage market.

http://www.moving.com/mortgage/mortgage-market-commentary.asp

All indications are to lock as of Friday the 6th.

We have a convertible 1/1 ARM special that runs through the 23rd @ 3.99 with caps of 2/2/6. That means the worst case average rate over 3 years would be 5.99. APR is 5.293 (this is based on the fully indexed rate). All this with about $ 300 in closing costs.

The point of mentioning this is that the convertible ARMS are a favorite of people who expect that rates may head lower by the end of the year. You can convert the ARM to a fixed rate any time after the 1st payment and within the 1st 36 months for $ 200 plus some other fees for the modification (e.g. recording, etc.). These programs require better credit and full income verification and a 680 middle score at the time of conversion.

Ask your lender to see if he has any such options for you.

Good luck and congratulations on your new home.

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