Posts Tagged ‘interest rates’

“Mortgage Rates Hit New 14 Month Highs. More Volatility Ahead!”

June 10, 2013

high_interest_ratesThis was one of the top news stories this week in Mortgage News Daily and many other news publications and broadcasts. I find this comical since mortgage interest rates have been at historic lows for several years and are still close to historic lows!

This “terrifying” interest rate rise causing these news headlines is an increase in the average 30 year fixed rate from 3.5% to 3.75%.

Let’s put this into perspective. The difference in the monthly payment for a $100,000 loan between 3.5% and 3.75% is a whopping $14. My guess is that most of us would find $14 if we vacuumed under all our car seats and sofas. (more…)

To Quote or Not to Quote Interest Rates… That is the Question!

May 14, 2012

“What are your rates today?” This seems like such a simple question. However, there is no simple answer to this seemingly simple question.

Interest rates vary greatly based on loan type, loan size, loan term, and lock-in time, region of the county, world markets, bond prices and many other volatile indexes. These factors have a major impact on the movement of interest rates, but this list does not include the most important factor, the specific borrower’s credit score, LTV, DTI, property type, source of down payment, etc! (more…)

Lowest in History??

July 26, 2010

How many times have we heard this about real estate loans?  But guess what…it is TRUE.

Today, Metro Brokers Financial rates are 4.25% for 30-year fixed, and 3.75% for 15-year fixed. 

Rates are the lowest in history, or at least as long as I have been in the business (28 years).  In fact, both 30-year and 15-year fixed-rate mortgages are at the lowest levels since Freddie Mac even began keeping track.

Home shoppers who missed the April 30 deadline for a housing tax credit might have the last laugh. They are likely to end up saving more than the $8,000 they could have received from the tax refund. A mere 1.5% rate differential on a $200,000 loan is $3,000 per year.  The average homeowner keeps the property for 8 years.  That means a savings of $24,000 just because of low rates! 

Folks who know this, are taking action. Mortgage applications rose 3.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

Real estate agents, share these numbers…it’s your duty!