Current Rates
Daily rate report: January 31, 2012:
Rates on January 31, 2012 were the lowest I have seen them, ever. See the link below for my posting of current rates. You also need to be careful about getting a mortgage through a retail bank. What I am finding is that they are being really piggy on fees that they are not required to disclose in the same manner as brokers. One loan officer at a major bank quoted 4.375% for a 30 year conforming rate loan at no points. What wasn’t disclosed is that this loan came with a rebate of 4 points so the loan officer would have made close to $8,000 on this just under 200K loan.Overview:
The 10 year treasury bond, the benchmark for the setting of the 15 and 30 year mortgage rate, continues to hover at all time lows. What’s important to understand is that mortgage rates usually rise when equities are up and drop when equities are dropping. This is because investors selling equities usually move into bonds which drives down the bond yields. Switch it and it’s just the opposite. We continue to experience the lowest rates on the 30 and 15 year loan since their inception. This is also an excellent time to buy a home. Compare rents to owning and the numbers clearly favor home ownership. Consider that about 25% of the mortgage payment on the first payment goes to principal and even if the home doesn’t
appreciate for several years, you are still building equity which is not the not the case with renting. One reason this is the case is that there are a lot more renters out there and far less qualified buyers, so until the inventory corrects to normal market conditions, this is a great time to own a home!Check the current interest rates for more information about refinancing your home. If I can be of assistance, please don’t hesitate to contact me.
