Well, some people missed their chance to receive historically low interest rates about 2 weeks ago. 30 yr fixed rates, with optium loan scenarios, were around 5.5% about two weeks ago. Some people decided to "Push" their bet that they would dip even more but were rudly awakened when in the matter of just hours and maybe days that same loan scenario was anywhere from .125% - .5 % higher. The key shop for bottoming out rates is to have your loan pre-approved and stay in constant communication with your broker and at just the right time choose to lock. A general rule of thumb that I use is; If you can make up the cost of doing the loan by improving your interest rate and terms in a matter of 36 - 42 months then it is probably worth it. Counting on the fact that you are going to be in that house for that period of time. Another key is to keep in perspective how little effect an 1/8 or even 1/4 of a percentage point has on your bottom line monthly payment. Often times you can make that up by shopping your insurance carrier. But, Matt, I have been with ABC Insurance for 20 years???? Well my answer is, What has your agent done for you to improve your rates???? He or she has probably just sent you 20 birthday cards!!!
Anyway, rates are still VERY GOOD!!! Anytime you can get an interest rate on a fixed mortgage for under 6.5% that is pretty good. Think of it this way mortgage companies are loaning you money for often times 30 or more years and only charging you 6.5%. Don't get me wrong they are making a lot of money on your loan but percpectivly your Credit Cards, Auto loans, small business loans, an secured or unsecured personal loans are making their respective lender much more money.
Any questions and.or comments are much appreciated!!!
Call 303.666.6550 or email matt@myprosperityfinancial.com
Mortgage Insight Specialist.
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2 comments:
Things sure have been rocky. Do you think things will stabalize anytime soon?
Yes they have been rocky.... The problem is that media always focuses on the BAD. I have never seen ONE article, post, whatever about how many ARM's are sucessful??? Have you? That bad news tends to effect the stock market. I think we are VERY close to a bottom, historically this is what the stack market does when it is searching for a low point. If the stock market gets better, we can say goodbye to good interest rates, that's just a given.
So, yes it has been rocky, but I think at least in my state Colorado, I think it will soon be on the way back up. It will head in the right direction in Colorado this fall.
Thanks for the comment
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