Interest rates?

[jltimm]

Just wondering what the interest rates are at for home mortages at this time? Heard they were pretty low, but wasn't sure if it was true?

[Down Deep]

5.25 % for 30 year fixed. I'd wait and see what the new fed rate will do to the mortgage rates. There is a good chance that you may be able to get something around 4 to 4.5%. If someone was ever going to buy a house and and had the means to do it, a 4.5% rate would be the time to do it. Rates that low are the same as GI loans made after WW2. Just make sure you don't go over 25% of your income and have 8 months emergency household expense money stored away that is not used as part of your deal.

I bought a house in 1981 and was glad to get 10% on a contract for deed. The prevailing home mortgage interest rate was 17%.

[BoxMN]

Can also ask fisherdog19, in the sponsor forum. I am closing tomorrow on a refi, and he was great to work with. I might be able to go lower in the future if things would go perfect, but I am very happy to be closing with the current rate, mid 5's.

[18 inch Crappie]

Today they are 4.75% with closing cost or 5.25% no closinng cost or cash out of pocket.

[cliffy]

Here are the info I got from my local bank this morning. This is in the Fargo/Moorhead area.

30 Year Fixed Rate

4.5% with 0.0 points

4.375% with 0.25 points

4.25% with 1.0 points

[sticknstring]

Yowza. What's the "rule" as they say for percentage decrease before it's worthwhile to refi - 1%? We're locked at 5 3/8 for another 6 months then it goes to 6 3/8 for the remainder. 4 3/8 would sure be nice!

[hanson]

Co-worker of mine just locked in at 4-3/4% on a 30 yr fixed refi this morning.

[fisherdog19]

Rates are at 4.5% on a 30 year fixed, which is a best case scenario combining credit score, loan to value, and loan amount. I have several FM members that I can lock in at 4.75 if they decide to pull the trigger. I have one FM member that I locked a few weeks ago and we are closing today; I am negotiating a rate float down for him and hope to reduce his rate by .375%.

Remember, I am a banker not a broker so you don't need to worry about anything. Everything is fully disclosed.

Hanson, shoot me an email, I'm wondering if you ever did anything?

[jwhjr]

Peter - email sent.

[fisherdog19]

Email recieved, hope I can help you out.

Rule of thumb on a refinance is that the closing costs (not total settlement charges) related to the refinance should be covered in 48 months based on the monthly payment savings unless you are paying off debt, getting cash back equivelant to double your closing costs, or shortening the term of your loan (30 year to 20 year). Example, $4,800 in closing costs with $200 a month in savings due to lower payment equals the closing costs being covered in 24 months (24 X $200). That is the type of net tangible benefit an Underwriter will be looking for. If you only saved $75 per month in the same scenario, then it would not be approved.

Rates got worse mid day and we gave back around .375% on the rate. We're still close to 5% but not in the mid 4% range anymore. Either way they are still insanely low.

[jwhjr]

Thanks for the information Peter. I knew I'd need a significant reduction in the rate based on my situation to make a difference, but I figured I'd check. A buddy of mine should be contacting you soon as he has an ARM coming up and will be looking to refi.

[sticknstring]

Great info... I'll have to crunch some numbers to see if it'll be worthwhile.

[fisherdog19]

Thanks for the referral jwhjr. If any of you want numbers run, just shoot me the particulars; current pricipal amount, home value, current rate, and original loan amount. I can shoot you a comparison as I have all the tools to get it done in a minute or two.