Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for WhyDoyouneedtoknow

Why are quoted rates for 10 year refinancing higher than the quotes for 15 year refinancing?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008 - Franklin
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

"The best loan officers are always watching the proper market indicators in real-time.  You wouldn't work with a stockbroker quoting yesterday's closing price, and you shouldn't work with a loan officer ignorant to the mortgage bond market"

-Thats a little overblown. By that same token you shouldnt have your car taken car of by a mechanic unless he is a nascar mechanic and your lawyer shouldnt be representing you unless he is the attorney general.

My eye doctor is Galileo.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008

The reality is that the mortgage-backed securities market is esoteric; it's foreign to most people.  It's not in-your-face clear what mortgage rates will do when the FNMA 6.000% 30-year moves from $100.34 to $100.36 in a day.  We tend to ignore what we don't understand -- it's human nature.

By contrast, it's not tough to figure out what happened when the 10-year treasury note drops from 4.27% to 4.23%.  This is one major reason why people incorrectly use the 10-year treasury to track mortgage rates -- it's easier to follow. 

But that doesn't make it right.

As a layperson, you are not expected to know why the 10-year treasury note has nothing to do with mortgage rates.  It's a common misconception.  Your loan officer, on the other hand, is supposed to know the difference.

The best loan officers are always watching the proper market indicators in real-time.  You wouldn't work with a stockbroker quoting yesterday's closing price, and you shouldn't work with a loan officer ignorant to the mortgage bond market.  After all, mortgage bonds trade just like stocks and change minute-by-minute.

In the game of home loans and high finance, those with the best information preserve the most wealth, so next time you're talking to a loan officer, just ask the simple question: "Where do mortgage rates come from?".  If the answer is anything other than "mortgage-backed securities", end the relationship on the spot -- you deserve a better loan officer than that.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008

They should be the same....what are you being quoted? email me

amontgomery@1stmarinerbank.com

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008

HANK&BEN printed money.. bought the MBS (what controls the pricing of the 30 year mortgage) in mass.. price high.. yields/rates drop...  America is so loaded in debt that low rates AND stretched amortization is needed.. So, the 30 year it is.. If the 10 & 15 year rate was 4% for example, the amortization schedule  would make the payments too high for most.. the FED/TREASURY is trying to save America.. reducing the term will not accomplish it.. Reducing the rate and stretching the term may help.. We'll see.. If you are getting a worse rate for the 10 or 15 (many of them are worse) consider the 20 or 30 and just set it up electronically and make your own amortization.  No harm in prepaying debt.  Happy Holidays and good luck.. Howdy Nic.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008
Profile picture for jzparker
Because the 10 year is not as common.  Its more difficult for lenders to package the 10 year loans and sell them, so there's an upcharge.  Its the same for 20 and 25 year loans, too.  Some lenders even give better rates on the 30 year loans than a 15 year loan. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008
Why do you need to know?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 19 2008
 
Related Questions
What interest rate can I get on a refinance with excellent credit? 15 year
Profile picture for Derek Tunison
Latest answer by Derek Tunison
December 18 2008 | 2 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 5532 Rathkeale Ln, Franklin, TN Home For Sale
    5532 Rathkeale Ln, Franklin, TN 37067

     For Sale: $495,000

    • Beds: 4
    • Sqft: 3557
    • Baths: 3.5
    • Lot: 13932
  2. 6004 Landmark Pl, Brentwood, TN Home For Sale
    6004 Landmark Pl, Brentwood, TN 37027

     For Sale: $645,000

    • Beds: 4
    • Sqft: 3335
    • Baths: 2.5
    • Lot: 7770
  3. 2409 N Berrys Chapel Rd, Franklin, TN Home For Sale
    2409 N Berrys Chapel Rd, Franklin, TN 37069

     For Sale: $669,900

    • Beds: 4
    • Sqft: 4280
    • Baths: 4.5
    • Lot: 128938