Profile picture for Bradlo0600

Has anybody got an idea on how low Mortg Int Rates are going? I can lock in at 4.125 on a 15 yr

If I lock in today, but does anyone think the rates will go lower?
  • July 30 2010 - Henrico
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    Answers (39)

    Best Answer

    The crystal ball is a little cloudy, but I think that is pretty good! Your mortage company/lender has a better estimate. 
    • July 30 2010
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    This thread has run its course. It will now be locked.

    -Geoff-
    • August 06 2010
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    I believe that is a super rate! Of course it is very hard to predict how the market is going to be from minute to minute! Good luck! Yvette
    • August 05 2010
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    Profile picture for Open Home Mortgage

    How much lower do you want them to get? 
    I get asked this question every day by my clients.  The rates are lower than they have ever been.  If you need them to get lower in order to convince you to refinance--you probably don't need to refinance.
    HOWEVER, if you go to a 15 year mortgage from a 30 year, the savings are tremendous.  a 4.125% rate on 15 year is not bad, but you could get lower--it just depends on how your loan is arranged.

    • August 05 2010
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    Profile picture for vak555
    +1 in support of Clay :)

    Btw, if I was in the Bradlo position, I would seriously consider 5/1 ARM here.....if you have the cashflow, as you say you do....and you think you can pay it off in 7.5 years.....

    Why not do 5/1 @ 3.25%????  To lazy to work out the math, but assuming the monthly payment of $1,800, as Clay has estimated, I would venture to say that after 5 years the balance should be significantly lower that @ 4.125, and the risk of rates going up is insignificant due to your available cash flow and low loan balance.

    VK
    • August 05 2010
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    Clay has a heart the size OF Atlanta!

    Agreed Jason. It was pretty much a futile post anyway since the rate was already locked.

    • August 02 2010
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    Profile picture for Dallas Banker
    Wow, really Bradlo? Your attacking a lender on here who is simply trying to help? Maybe you're just an employee of Capcenter, but I think more would agree that YOU are the blogging idiot.
    • August 02 2010
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    Clay has a heart the size the Atlanta!

    • August 02 2010
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    Clays is one of the smartest lenders on Zillow
    • August 02 2010
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    Clay's my Hero!
    • August 02 2010
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    Profile picture for Bradlo0600
    Mr Branch, it is my opinion that you are a blogging idiot.
    • August 02 2010
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    Your Statement:
    "I think at this time we can all see tha Clay Branch of Georgia Loans is one of those guys who just can't read or/more than that can't agree you got a greate loan."

    Maybe it is you that can not read, My statement 4 posts back:

    4.125% on a no closing cost loan at $140K is an excellent deal but would not have been a good deal if paying closing costs.

    BTW, shouldn't your statement read " cant agree I got a great loan?
    This thread is reminding me of the AIM threads.
    • August 01 2010
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    Profile picture for Bradlo0600
    Hi Everyone and Cherie, thank you for your comment.

    I think at this time we can all see tha Clay Branch of Georgia Loans is one of those guys who just can't read or/more than that can't agree you got a greate loan.

    To the rest of you, thank you for your input and no matter if we agree or disagree, we all have a right to our opnion.

    Right on Cherie, I locked in and closing on August 23rd.

    AGAIN  -  CAPCENTER mortgage in Richmond is your best deal out there.!    Bye Brad
    • August 01 2010
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    Cherie, the Prime Rate has nothing to do with this thread and it is 3.25% right now, not 0. 
    • August 01 2010
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    4.50% IS AN ALL TIME LOW HISTORICALLY.  So if you were to look at the odds,  the odds are more in favor of going up then down.  Plus they can't make the prime rate much lower, I think it is 0% right now?
    If I were you,  I would refi right now.  I'm not a lender but have been around real estate for over 25 years, and I've never seen it this low.  Don't push your luck and lose out, as soon as our economy gets better it is an absolute that rates will go up.  they are only low right now because of our crummy economy.   Hope this helps.
    • August 01 2010
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    You are getting a good deal for your loan amount. If the loan amount was 250K or more, then you would be overpaying. The only way you will payoff in 7.5 Years is to add $766/month as additional principal or 1 $10,000 payment per year as additional principal.
    • August 01 2010
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    Profile picture for Bradlo0600
    Clay, sorry, some more information.

    The payoff of 7.5 was for if I paid down the intereste to 3.875 which would cost 1400.00.  This would add 1400 dollars at closing, which if amoritized over the 15 years would take 7.5 years to break even. Not worth my time or money if I am paying my normal payment + next months premium for each month, cutting the 15 years to a 7 1/2 year mortgage.  


    4.125,% at 15 years
    NO CLOSING COST - ZERO ZERO ZERO.  

    The only money you put down is the taxes for the Escrow account. (Taxes) This amount goes directly ino the Excrow account and my real cost is $13.00 application fee. 
     
    (don't forget I will be getting that same amount back when the old mortgage is paid off).

    The Appraisal cost is taken care of by Cap Center as long as you close the loan.

    They even have there own attourneys for the closing, so no cost there either.  

    I should say I have an credit score about 800 and no debt outside of the existing 30 year morgage.

    I think CAPCenter Motrages and I worked out an Excellent deal, and if you here of someone who can really beat this, please post your inputs!!!!

    Thank you CapCenter Motgage of Richmond, VA.
    • August 01 2010
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    Bradlo, your P & I payment will be $1044 per month and to payoff in 7.5 years you will have to add $766 each month, or a total of $1810/month. Is that the information you were given?
    • August 01 2010
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    4.125% on a no closing cost loan at $140K is an excellent deal but would not have been a good deal if paying closing costs. Check to make sure the cost of the appraisal is credited back to you at closing if you were told it is a no closing cost loan.
    • August 01 2010
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    Bradlo,

    "Lane's info" wasn't Lane's...This is a link to a site with good insight into rates and what makes them move... Link

    • August 01 2010
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    Profile picture for Bradlo0600

    Hi Folks, thank you first for all your answers, and I am sorry I did not give more Info.

     I locked in at 4.125 and I chose Cecily answer because it was short and correct.`  Info: 140,000.00 loan on 180,000 value home, no PMI, ZERO CLOSING COST,  going from a 30yr 5.75% to a 15yr 4.125% rate.  Monthly payment almost eaxtly the same since I dropped  the PMI on the refi.  (CAPCENTER Mortgage Richmond VA...thank you so much)

    Since I like to pay the next month princple with this months mortgage, I will have this paid off in 7 1/2 years.

    Buying down a point does not do a lot at all, accept make me wait until almost 1/2 the loan payments before I  break even.

    This turned out to be a really good blog

    As I don't think you can always get the lowest rate, like in the stock market you can never get the very high or the very low, but be happy with what you got, and you are ok.

    I also very much liked Lane Midgets answer for real information about what could affect rate and how to
    play it out going forward. (we will see if I got the low of lows,,,,but heck)
     
     Hudg and James, thanks for making it interesting, as it is a free country and we all have the right to agree and especially the right to disagree.

    • August 01 2010
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    Big difference between mean and direct.  HUGD asked a very good question.  What is wrong with asking someone to explain why they have quoted the way they have quoted?  Maybe James can enlighten those of us that do not see the benefit to quoting an FHA loan in that scenario. 
    • August 01 2010
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    Profile picture for ssmaxx
    HUDG!!!!   Is that you again being rude you little rebel you?

    James, You'll have to excuse HUDG. This is what he does each day. He just spends his time offending everyone on Zillow!  I have theories about him (as you do I see). One theory is that he has a Napoleon complex. But sadly I dont think its his stature that is little.

    I would suggest reporting him by clicking on the flag, and reporting that he is rude.   The little guy refuses to go get some professional help and its pretty obvious to everyone he has a psychiatric disorder.

    HUDG Now stop being a bad boy. Remeber we discussed this. You can say what you mean without saying it mean. Here's an article that might help you out honey. http://www.wikihow.com/Stop-Being-Mean-to-People

    • August 01 2010
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    I hope that your question was answered.
    • July 31 2010
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    Wow...

    LOL  

    I wish you the best, HUGD, I am guessing you weren't hugged much as a kid. 



    • July 31 2010
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    I hesitate to wade into the muck, but HUGD, I think you owe me an apology.

    First, my comments had NOTHING to do with county loan limits for Fannie/Freddie nor FHA. Brad has not shared with us what county the loan is in, only that he is writing from Henrico. Nor has he shared with us whether the loan is over or under the 417K mark.
    Secondly, I stand by my statement that IF the loan is over 417K, depending on the closing costs etc, 4.125 might, in fact, be a good quote. PLEASE notice the word MIGHT. Without the specifics that Clay has asked for, MIGHT is as specific as we can get.

    We also do not know if Brad's loan is a purchase or a refi. Quoting rates on refi's with most lenders NOT offering after hours lock-ins or "overnight" protection on refinances seems reckless at best. Also, quoting a rate without closing costs, points, etc. also seems disingenuous to me. Since you are not identified as a lender or broker, it would also be nice if you mention how you obtained confidential pricing information, and from what lender?

    I also think recommending a lender on Zillow by name is against the new Zillow policies, but that is for Zillow to decide. The lender you named is not even in Virginia.

    Your comment to Joseph was plain rude, as he is certainly entitled to voice his opinion. Why you seem filled with vitriol on this post is beyond me, and I for one, take umbrage with your calling out MY opinion, seems beyond the pale. Not to mention your mistake in the specifics...

    I look forward to your apology to Joseph and myself.

    NOTE TO Zillow: I am sure I sent a reply similar to this around 8 am EST this morning, however, it never came up...shrugs.

    I wish everyone a great weekend.
    Jim, HSOA.
    • July 31 2010
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    You should lock your interest rate in when it makes you feel comfortable and the payments are affordable for your situation. No one knows how low they will go but 4.125% sounds really good to me.
    • July 31 2010
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    Bradlo0600, you should come back on your thread and answer a few questions like loan size, estimated value, is this a cash out loan, is this for your primary residence, and does the quote include origination fees, etc. Without knowing those details no one can tell you to lock or not. 

    You are asking if a 15 Year rate will go lower so look at the recent history. A 15 year base par rate has been at 3.75 since JUNE 4, with the exception of 2 days. On 6/17 the pricing of that loan started climbing, made a significant jump on 7/15 and improved more on 7/23, 7/28, and today. But, with all that improvement the rate is still 3.75%, it is the PRICE of the loan that has improved. IMHO, you will most likely not see the 15 Year improve any more in rate unless the Fed unleashes a new round of MBS buying or creates some new program and that wont happen unless GDP goes negative. The suggestion below to" float "
    is crazy but that's my opinion. If you want to know if your offer is good then answer the details and we can tell you. Good luck.   
    • July 30 2010
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    Ctrl C

    Ctrl V

    do you even understand the comentary?

    • July 30 2010
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    Friday's bond market has opened in positive territory following news of slower than expected economic activity during the last few months. The stock markets initially opened with losses, but have since recovered to currently show minor gains. The Dow is currently up 15 points while the Nasdaq has gained 4 points. The bond market is currently up 13/32, which should improve this morning's mortgage rates by approximately .125 - .250 of a discount point.

    This morning's big news was the release of the 2nd Quarter Gross Domestic Product (GDP), which is considered to be the best indicator of economic activity. It revealed an annual rate of growth of 2.4% that was slightly lower than forecasts. Making this even better news was a large upward revision to the 1st Quarter's final reading, meaning economic activity slowed considerably between the first and second quarters of the year. The slowing economy creates a favorable environment for the bond market and makes longer-term securities such as mortgage-related bonds more attractive to investors. As investors move funds into bonds, their yields drop and mortgage rates improve.

    The 2nd Quarter Employment Cost Index (ECI) was also released this morning, showing a 0.5% increase. This matched forecasts, indicating that employer costs for wages and benefits rose during the quarter. That can basically be considered bad news for bonds as it raises the possibility of wage inflation and gives consumers more fuel to spend, but since it pegged expectations its impact on this morning's rates has been minimal.

    Lastly, the University of Michigan revised their Index of Consumer Sentiment for July with a reading of 67.8. This means that consumer sentiment was stronger than previously estimated, which can be considered negative for bonds. However, it was not enough of a variance to influence bond trading or mortgage rates, especially since the GDP reading carries significant importance to the markets.

    Next week is fairly busy with a handful of relevant economic reports scheduled for release, but it is not the number of reports that makes it an active week. It is the importance of some of the data that draws attention, such as the Institute for Supply Management's (ISM) manufacturing index during late morning hours Monday. And the almighty monthly Employment report early Friday morning. In between there are also a couple of reports that may influence rates. Look for more details on next week's events in Sunday's weekly preview.

    If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.


    • July 30 2010
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