Questions tagged [mortgage-rate]

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1
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0answers
73 views

Can banking interest rates go again over 10% like a few decade ago? [closed]

In the current modern world, is is still feasible for banking interest rates to go over 10%?
2
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3answers
202 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 ...
5
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3answers
529 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. ...
2
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1answer
77 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) ...
23
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8answers
13k 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 ...
1
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2answers
36 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
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0answers
34 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 ...
1
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2answers
109 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 ...
0
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1answer
53 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 ...
4
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1answer
173 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) ...
1
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1answer
100 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 ...
7
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1answer
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 ...
34
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7answers
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 ...
5
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1answer
705 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. ...
3
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1answer
303 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'...
2
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3answers
288 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 ...
2
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4answers
202 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? ...
6
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2answers
20k 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?
20
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2answers
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 ...
0
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1answer
92 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 ...
44
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5answers
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 ...
11
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4answers
10k 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 -- ...
2
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2answers
119 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 ...
11
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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 ...
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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 ...
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3answers
419 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
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2answers
239 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
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1answer
5k 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 ...
2
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2answers
176 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, ...
0
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1answer
1k 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 ...
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2answers
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 ...
2
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4answers
3k 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. ...
12
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5answers
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,...
2
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1answer
154 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 ...
14
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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
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2answers
344 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
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2answers
154 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 ...
4
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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+...
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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
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1answer
123 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....
4
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2answers
205 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?
2
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1answer
247 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% ...
8
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4answers
700 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
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1answer
57 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
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3answers
174 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
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1answer
249 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 ...
2
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1answer
162 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 ...
3
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2answers
495 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 ...
1
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1answer
95 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 ...
5
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2answers
279 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> ...