Mortgage Rates near 4-year low....keep on eye on falling interest rates (1 Viewer)

Pure Energy

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With another potential cut from the Fed after it's meeting next week....keep an eye on Mortgage rates. I have a 6.25% 30-year fixed that could be in play very soon.

http://www.thestreet.com/s/mortgage...ow/funds/saving-money/10400280.html?puc=_tscs

http://biz.yahoo.com/ap/080124/refi_rebound.html?.v=1

Schmidt noted that the Fed, which holds a two-day meeting starting Tuesday, has signaled it is disposed to further rate cuts that could send mortgage rates still lower. So he doesn't want to refinance too soon if even better rates will be available shortly.
 

keepoursaints

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We have 5.5 and every tells us not to even try to refinance although they sure don't mind sending us crap in the mail all the time.
 

Taurus

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Dude...c'mon lower rates!
 

gboudx

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We have 5.75%. If it approaches 5%, then I might be interested.
 

Farb

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It will take some time to really effect the mortgage interest rates. Lets just hope people rush out to buy cars with the prime rate cut, that should spur the mortgage rates to drop a little.

Now, if you had an equity line of credit, this would be good....
 

Furor

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I'm buying a house in Houston, closing next Friday...I locked in at 5.25% on a 15yr fixed with no points last week.
 

Rob Beaux

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I'm buying a house in Houston, closing next Friday...I locked in at 5.25% on a 15yr fixed with no points last week.
Thats what I am hoping to jump into soon. I have 2 more months to avoid a prepay penalty. Used the ARM to my advantage and it wont reset for 4 or 5 years so I can pick and choose when to jump. The 15yr are looking tempting even at a equal interest rate.
 
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muzzy

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My rate: 2.69%. I love the SBA!
 

UGASaintsFan

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I would like to refi to a 15 year mortgage, but I in year 4 of a 30 year at 5.5% and I doubt I will be in this house more than 2 years from now, dont know if it is worth it or not to make a switch at this point.
 
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I would like to refi to a 15 year mortgage, but I in year 4 of a 30 year at 5.5% and I doubt I will be in this house more than 2 years from now, dont know if it is worth it or not to make a switch at this point.
I can't think of any scenario where refinancing from a 30 to a 15 year fixed with < 1% rate change would make economic sense if you're only going to pay on the loan for 24 months or fewer. Now going from 15 to 30 may make sense since your monthly payment would drop significantly if you at the same interest rate. For budgeting purposes you may need the shortfall to make the household run.

I'm curious: Why were you thinking of refinancing to 15 years?
 

4saintspirit

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for those looking to refinance there is a great set of calculators you can use on line -- you put in your loan amount -- your current interest rate -- your new interest rate and any points or closing costs for refinancing and they tell you how many years is the break even point. I have a 6.25% and ran it through if I moved to a 5.5% with 1 point and 2000 dollars of closing costs and it only took 4 years to breakeven -- but I think I may be able to refinance with less outgoing costs
 

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Interest rates came down nicely today.

Keep an eye on the economic stimulus package...there is a provision in there to significantly raise the conforming loan limit, for one year only. That would definitely help the situation in Southern California, for example.
 

Taurus

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Interest rates came down nicely today.

Keep an eye on the economic stimulus package...there is a provision in there to significantly raise the conforming loan limit, for one year only. That would definitely help the situation in Southern California, for example.
When would that go into effect, Dan? And how much are they thinking of raising it to?

Hopefully somewhere far north of $500k since you can't find diddly in SoCal for less than that.
 
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A tax rebate deal reached Thursday between Democratic House Speaker Nancy Pelosi of San Francisco and House Republican Leader John Boehner of Ohio - and endorsed by the White House - would allow the two government-sponsored mortgage entities to temporarily purchase home loans as high as $729,750 in high-cost areas, including parts of California.
But there appears to be some resistance from the GOP who want more oversight as part of the bill.


Here's a short-term compromise plan; if it passes, you won't have much time to drag your feet on it.



Sen. Mel Martinez, R-Fla., said a better compromise would be to expand loan limits for a shorter period, 90 to 120 days. Then, those limits would expire unless lawmakers pass a long-delayed oversight bill, he said.





http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/26/BUS8UML6H.DTL
 

Furor

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Long term mortgage rates are not directly affected by the Fed rate. They are more tied to bonds, and in some cases actually rise after a Fed rate cut.
 

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