Questions tagged [mortgage-rate]
The mortgage-rate tag has no usage guidance.
67
questions
6
votes
2
answers
511
views
Why does a 5% down payment get me a lower mortgage interest rate than 20% down?
I recently received a letter from my (US) bank, saying that I was prequalified for a mortgage. There were two options, both 30 year fixed rate, for the same home price total:
5% down, with a 6.093% ...
- 337
0
votes
2
answers
183
views
Way for bank to entice someone to repay loan with an interest rate lower than current market rate
When interest rates were low lots of people refinanced their loans or took out new loans at the low rates. The banks are not happy about having to sit on 30 year mortgages with low rates, but there ...
- 121
2
votes
2
answers
118
views
If deposit rate at banks > mortgage rate, does it always make sense to take a mortgage loan and not to pay in cash for house?
If deposit rate at banks > mortgage rate, does it always make sense to take a mortgage loan and not to pay in cash for house?
It sounds simple but true. If mortgage rate is 5% and deposit rate is 7%...
- 21
15
votes
1
answer
4k
views
Is there a strong correlation between credit score and mortgage rate in the US?
This is probably a naive question, but I've heard many conflicting answers so I figured it'd be worth asking here.
Let's say I'm looking to buy a house in the US (e.g. worth $500k), and I'm getting a ...
- 307
0
votes
2
answers
68
views
Down payment of owner-occupied multi-family after buying owner-occupied single family
This question is about US mortgages.
I was talking to a realtor who told me that buying a single-family home now as owner-occupied would prevent me from applying for an owner-occupied mortgage for a ...
- 719
2
votes
0
answers
97
views
Mortgage fix ending - but buying new house soon
Our 5 year fix ends next week, but we've just had an offer accepted on another, more expensive, property.
As I understand it, we've got two broad options
Pay SVR until we complete on new property (a ...
- 129
1
vote
1
answer
136
views
Calculate interest rate of mortgage loan that has deferred (suspended) payments
Simple example to illustrate the question:
Suppose I have a 30-year $100,000 mortgage loan at a fixed-rate of 5% interest that I took out exactly 10 years ago. I have been making timely payments each ...
- 11
2
votes
3
answers
223
views
Is it beneficial to pay mortgage points if I have high income in the year I am starting a mortgage?
Let's say I typically make $120K salary every year. And the rest of the income is in long term stock growth (which are not included in taxable income).
But let's say this year I have a income of $360K ...
- 47
1
vote
2
answers
82
views
Calculate term of mortgage based on monthly payment value
Using the PMT formula in Excel, I can calculate the monthly payments based on the interest on the loan (e.g.2%), the principal value of the loan (e.g. £100,000), and the term of the loan (e.g. 25 ...
3
votes
0
answers
38
views
Have changes to mortgage standard variable rates ever diverged much from changes to base rate?
Historically, although SVRs tend to be a few percent above base rate, has any lender's SVR ever made a drastic change that wasn't caused by a change in base rate?
This is in the context of risk of ...
- 227
1
vote
2
answers
142
views
When does 7-1 (or 5-1) ARM make sense for mortgage?
I have seen previous questions from close to 6-8 years ago on this subject and so I am asking here for:
relevance to 2020 (esp in the context of historic low rates and
Covid-19)
from an inverted ...
- 1,926
0
votes
1
answer
89
views
Home Lender Shopping: Should I use Savings Funds to Zero-out Credit Cards?
[USA] A seller just agreed to my offer on their house ($500k). This would be my first, and I am about to start reaching out to lenders for loan offers. I have $50k in savings ($15k in cash and $35k ...
1
vote
1
answer
112
views
Will fixed term mortgage rates follow the cut in Bank of England base rate?
As I am currently looking into buying my first house, I am wondering what the implications of the recent Bank of England base rate cut will have on the rates for mortgages available?
I have been ...
- 839
4
votes
1
answer
182
views
Is it a good time for refinance, why rates are different in WellsFargo website
I am 26, a first-time homeowner and I bought a house last summer for $265k and as of today I got an exactly $180k principle remaining as of today I have a 30-year mortgage (my lender is WellsFargo) ...
- 657
8
votes
1
answer
1k
views
Mortgage brokers - should I expect to get a better deal than I can find myself?
Since I am currently looking into potentially buying my first house, when asked by an estate agent (with whom I had just viewed a house) whether I would be interested in talking to their mortgage ...
- 839
34
votes
7
answers
9k
views
First time buyer- How to decide how much to put toward a deposit?
I live and work in the UK, and am starting to look seriously into buying my first house. I have thought about looking to buy a few times over the last few years, but ended up deciding not to for ...
- 839
5
votes
1
answer
721
views
What does it mean when 5 year fixed is lower than 5 year variable [duplicate]
For the past 10 years, we've had 2 5-year variable rate mortgages. We have more or less won the bet in the fixed vs. variable game.
In the past, the variable was always a lower rate than the fixed. ...
- 2,312
23
votes
8
answers
14k
views
Does paying a mortgage early mean you effectively paid a much higher interest rate?
Most mortgages use an amortization schedule that have you pay more interest than principal at the beginning and then less interest and more principal as time goes one.
You can see this using this ...
- 361
2
votes
2
answers
164
views
Mortgage: Floating rate loan tenure extension on rate increase
I am trying to figure out how my bank has implemented re-pricing on my floating rate home loan.
The original home loan was for an amount of ₹ 48 lakhs (₹ 4.8 Mn) at an annual rate of interest (RoI) ...
- 131
3
votes
1
answer
331
views
What's the incentive to offer consumers loans with negative interest?
A bank in Denmark (Jyske Bank) is reportedly going to offer consumer mortgages at -0.5% interest.
First off, is that true? Or is there some catch making the actual effective interest positive?
If it'...
- 661
2
votes
3
answers
318
views
Mortgage vs cash for a first-time home buyer
I need advice:
I'm in a condo contract, priced at $175K. I have been looking around for mortgage, and got a quote for a 3.125% 15-year mortgage with 20% down payment (so loan would be 140K).
I was ...
- 435
2
votes
4
answers
233
views
Mortgage broker vs bank mortgage for home buying
I'm a new home buyer, buying a condo. Now that we have already signed a contract, a question raised for me. Is it recommended to get a mortgage directly from a bank or through a mortgage broker?
...
- 435
20
votes
2
answers
4k
views
What incentives do banks have to gather up loans into pools (backed by Ginnie Mae)and selling them?
This is a two part question:
1) I understand that there are certain mortgage loans that when originated by banks can be gathered up into pools and then "sold" to investors, and that these pools are ...
- 303
0
votes
1
answer
110
views
When will a lender pay the upfront costs of refinancing?
I have a 30 year fixed mortgage with an interest rate of 4.875%. I’ve only been paying it 4 months.
Interest rates appear to be dropping, so a family member told me:
Interest rates have been ...
- 103
44
votes
5
answers
14k
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 ...
- 1,371
2
votes
2
answers
125
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
4
answers
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 ...
- 617
1
vote
3
answers
476
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
2
answers
282
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 ...
- 1
12
votes
4
answers
12k
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 -- ...
- 403
0
votes
1
answer
2k
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 ...
- 103
3
votes
2
answers
1k
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 ...
- 136
12
votes
5
answers
5k
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,...
- 121
2
votes
1
answer
194
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 ...
- 21
2
votes
2
answers
206
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
3
answers
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 ...
- 791
4
votes
2
answers
533
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 ...
- 175
0
votes
2
answers
163
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 ...
- 11
2
votes
4
answers
7k
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. ...
- 161
17
votes
3
answers
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, ...
- 709
5
votes
1
answer
151
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....
- 181
2
votes
1
answer
261
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% ...
- 123
12
votes
2
answers
6k
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 ...
- 223
8
votes
4
answers
718
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 ...
- 286
0
votes
1
answer
62
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. ...
- 173
2
votes
3
answers
186
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.
- 123
2
votes
1
answer
177
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 ...
- 175
2
votes
1
answer
275
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 ...
- 456
1
vote
1
answer
101
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
5
answers
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 ...
- 211