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Questions tagged [mortgage-rate]

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44
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5answers
13k views

Going house hunting next week and my credit score just dropped by 100+ points

My wife and I (usually) have excellent credit. TransUninion had me at 790 and other agencies well into the 800s. Our lenders have already prequalified us for our home, and sent the ratings they got ...
2
votes
2answers
116 views

What effect will taking a new job have on mortgage rates

I'm starting to house hunt for my first home with my wife, we both have great credit, solid income and at least 10% downpayment saved up. However i recently was offered a position with a 20% raise at ...
15
votes
4answers
3k views

How do you figure out if a mortgage interest rate is reasonable?

I'm about to make an offer on a home and just spoke with a mortgage broker. The loan is going to be fairly standard for my area but "high-balance". She told me the best rate she can get is 4.75% which ...
1
vote
3answers
360 views

Comparison of Mortgage Rate vs 10 Year Treasury Rate

One of the typical reasons mentioned to not pre-pay a mortgage is that the interest is tax deductible and therefore the effective rate on the mortgage is much lower. However, this argument doesn't ...
0
votes
2answers
120 views

Should I pay off my Home Mortgage using rental home equity

We (spouse and I) have 58% equity in our home with a loan balance of about $230k at 3.375% with 28 years left on a 30 year loan. We also have a very adequately funded savings and retirement account as ...
11
votes
4answers
4k views

Refinancing immediately after closing on a house purchase

I recently purchased a new home as a primary residence with a 4.375% 30 year fixed mortgage. I discovered, a little too late in the process, that I could find rates significantly lower elsewhere -- ...
0
votes
1answer
648 views

Effective interest rate for mortgage loan

I'm currently deciding between taking loan with down payment and no down payment. To get behind the idea, I read a case study from a finance textbook. I get the basic math and understand concept of ...
3
votes
2answers
980 views

Buying points on a mortgage

Several questions on this SE have asked whether one should pay points (or even what they are). All of these questions appear to only look at the nominal cost, not the inflation-adjusted costs. Is it ...
12
votes
5answers
4k views

Paying extra on a mortgage. How much can I save? [duplicate]

Can I pay $12,000 extra once a year or $1000 every month - which option is better? The first option does sound better, but for a 30 year mortgage, is it that significant? The mortgage is for $527,...
2
votes
1answer
117 views

Should I refinance my primary home, take cash out to pay off my investment property?

My primary home has an interest rate (15 years) 3.125% and 100k mortgage loan left. I have just bought a second home for investment with the rate 4.625% for 30 years. Should I refinance my primary ...
3
votes
2answers
160 views

Mortgage with No Credit but a Co-Signer making over 100k near perfect credit

I am in an awkward way. I have enough to put a down payment of 25-30% on a house. I have 70k in assets not counting things like my vehicle (stocks + bank accounts). I have a decent job (1 in 4 years, ...
14
votes
3answers
2k views

Mortgage refinancing fees

I'm about to refinance my home from a 6% 30 year to a roughly 3.5% 15 year. I am going through a local non-bank third party company. He quoted me a fee of 2.5% for the refinance. I haven't refinanced ...
4
votes
2answers
253 views

Why did the change in average real mortgage rates in 1973-74 and 1983-84 swing so wildly?

While researching housing price trends, I stumbled across this graph which plots the year over year change in average real mortage rate against time: Two regions interest me: the approximate period ...
0
votes
2answers
145 views

Refi mortgage from 30 years to 20 years… what if I sell after 10?

If I can drop from 4.375% APR to 3.7% (or slightly lower) by going from a 30- to a 20-year note, I can save over $100,000 in interest over the life of my loan. However, like most folks, I have no ...
1
vote
4answers
2k views

Can one get a house mortgage without buying a house?

As of this writing, mortgage rates are low, but are expected to rise. I am not ready to commit to a house that ties me down to a location but would prefer to take advantage of the low mortgage rates. ...
14
votes
3answers
2k views

First time home buyer - Need suggestions and views on few things

We are a family of 3. Couple with one kid (2nd grade). We have been in states for 13 years. All these years we have been renting. So far I preferred to rent. But the rents are going up. Currently, ...
4
votes
1answer
118 views

How do you find best mortgage without damaging credit score?

I have a few questions on trying to get my first mortgage (30 year, fixed rate). I'm first doing some comparisons using these two online tools: https://www.zillow.com/mortgage-rates http://www....
2
votes
1answer
215 views

Repaying a mortgage early

I have a 2-year fixed-rate mortgage (2% interest rate) in the UK, with a 2% early repayment penalty (I have used my yearly early-repayment allowance already). Is there any benefit to taking a 2% ...
11
votes
1answer
3k views

At what point does a rate bait and switch become fraud?

I'm currently in the process of buying a house. Once the price was negotiated and agreed upon, I solicited quotes from various mortgage brokers. One offered a lower rate than the others, so we picked ...
8
votes
4answers
671 views

First Mortgage - Finding a Lender

I have been looking for a home in the US, I am a first time buyer and was wondering if someone with more experience than me can recommend ways to find a good lender? I started off by talking to my ...
0
votes
1answer
53 views

At what point in a refinance application should I be able to get a rate lock?

I've submitted my URLA, credit is checked and appraisal is scheduled. The broker has sent a disclosure pack that he wants me to sign and return with all documentation in order to start underwriting. ...
2
votes
3answers
169 views

How do I know if refinance is beneficial enough to me?

I have been contacted because mortgage rate dropped recently. But to what extent it will be beneficial to me to do re-finance.
2
votes
1answer
151 views

How do margins on tracker mortgages (variable rate mortages) vary over time?

One kind of mortgage, in the UK at least, is a tracker: the interest rate is equal to the central bank's base rate of interest, plus a constant margin. The margin can apply for the lifetime of the ...
2
votes
1answer
204 views

Interpreting mortgage rates

today is November 2014 and this comes from the state of Illinois, US I have received a mortgage preapproval letter that contains the following clause: The type of loan chosen is FNMA Agency 30 Yr ...
1
vote
1answer
79 views

Fair Value of a monthly payment given two Bank Payment structures

The question below was given in class and I have doubts about the use of the word "fair value". THe provided solution is to have Bank B make an overall return on the mortgage of 12%, but I don't agree ...
11
votes
5answers
2k views

What is the best way to stay risk neutral when buying a house with a mortgage?

I'm looking to buy a property. I do not want to take a risk on this property. Its sole purpose is to provide me with a place to live. How would I go about hedging against increasing interest rates, to ...
5
votes
2answers
259 views

Is it advisable to take small planned loans before going for a huge home loan?

The area that I am focusing on is related to get lower interest rate when applying for a house loan 4-5 years down the line. After graduating from school and having a job, the credit score> ...
5
votes
2answers
12k views

Can I work with two or more mortgage brokers at the same time?

When searching for a home loan, can I get two or more mortgage brokers to search for the best rate for me and at the end just choose the one that found the best rate?
4
votes
2answers
190 views

Fixed-rate mortgage vs HELOC

Why is it that a home equity loan or a home equity line of credit comes with a higher interest rate than a 15-year or 30-year fixed-rate mortgage?
4
votes
5answers
2k views

Overpaying my mortgage monthly payment

I have a 30 year fixed-rate mortgage. Yearly interest rate is r. If my initial principal is P and monthly payment is p, but this month i decide to pay p+Delta, how do i calculate how much of the (p+...
3
votes
2answers
471 views

How can I determine if a FHA loan refinance offer is from a reputable lender

I'm getting semi-frequent advertisements in the mail for FHA streamline eligibility. The latest one (from a vender called "Intelliloan") seems like it could be a reasonable deal: 1%-2% lower ...
5
votes
1answer
480 views

How can I model changing interest rate scenarios?

I'm looking for some advice on how to model a changing interest rate using a spreadsheet. I maintain a basic spreadsheet which I use to predict the future state of my home mortgage based on a number ...
2
votes
2answers
1k views

How do historically low interest rates affect real estate prices?

30-year fixed interest rates have hit a historic low today: 3.83%. I happen to live in the second hottest real estate market in the nation and am considering purchasing my first home, which would be ...
1
vote
2answers
98 views

How to analyze the option of refinancing a home?

5 years ago when the market was up I bought I a home. This house was in my means so I had no issues paying it on time for all this time. Now the market is down and the interest rates are about 2.5% ...
2
votes
2answers
117 views

FHA streamline refi

I am looking into doing a streamline refi on my 211,000 FHA loan with interest rate of 5.5%, 30 yr fixed. I've had this loan for 2 years. I can get a 4.25% rate, 30 yr fixed. My concern is that my MIP ...
5
votes
3answers
346 views

How are mortgage interest rates determined?

I know it's somewhat controlled by what the Fed sets interest rates at. I'm not clear on what exactly this interest rate is. Also I have heard that mortgage interest rates track Treasury Bonds. ...
6
votes
3answers
285 views

Average Mortgage Rate vs What I would get

So average mortgage rates are lower and lower. I.e. X-year mortgage rates are 4%. Lets assume I have a greater than average credit score and credit history, greater than average net worth, greater ...
6
votes
2answers
633 views

Is a good faith estimate equivalent to a rate lock?

I am in the middle stage of the loan approval process. Since all the uncertainty about the debt ceiling has been going on, I had asked my lender to give me a rate lock on the loan. But what he has ...
8
votes
4answers
8k views

Will a 7/1 ARM be better vs a 30yr fix rate for a mortgage if I am prepaying part of the principal every year

I am a 1st time home buyer and I have just accepted a counter offer from a seller for a house that I like. The next step was to apply and get a mortgage for buying this house. Some background on the ...
9
votes
2answers
797 views

What economic, political and other factors influence mortgage rates (and how)?

I'm trying to determine whether to lock in my interest rate or wait, and that led me to the broader question of what factors influence mortgage rates (both upwards and downwards)?
5
votes
1answer
195 views

When and how do I lock a mortgage rate while shopping for a refinance?

We're in the process of hunting around for a lender in our area (US) to refinance our mortgage with. I'm having a hard time understanding the steps in the application process. In particular once I'...
16
votes
3answers
912 views

Should I pay points on my mortgage?

We're looking into refinancing from a 30 year mortgage at 5.5% (currently 23 years left) to a 20 year mortgage at 4.5%. Paying points will reduce the rate somewhat, but since we don't have extra ...
9
votes
7answers
945 views

Which type of mortgage is better? Fixed-rate, or Variable?

We just bought our first house and are contemplating fixed vs. variable. Our broker is really pushing for variable but we're just not sure. I know interest rates will probably be creeping up soon, ...