Questions tagged [mortgage-rate]

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102 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% ...
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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 ...
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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 ...
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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 ...
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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 ...
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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
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 ...
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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 ...
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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 ...
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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. ...

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