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Answers (9)
Best Answer
- Steve Greene, "Steve Greene"
- Contributions:67
Greg is spot on. I would simply add that the market is constantly changing, but often the movement is not enough to affect the interest rate. So it is reflected in the price at which the lender can sell the loan. The credit that is being offered by the lender is directly tied to the price being paid for that loan at that time. Unless you are enjoying the "roller coaster ride" I would recommend that you lock into a rate/lender credit combination and not look back. Twenty years from now you might be telling everyone how you got the lowest rate ever. :)
"Lender is probably feeling really good too!"
... as they plan their trip to Hawaii.
... as they plan their trip to Hawaii.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
Lender is probably feeling really good too!
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
That was an awesome choice in my opinion! Congratulations!!!
- CrosisN
- Contributions:2
Thanks everyone. I actually just got approval today and I locked at 4% with a 1% credit. Plus I'm getting a builder credit of .75 and I have about 1K left over from options credit. So I'm feeling pretty great!
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
CrosisN,
Most likely that is simply the market moving. It changes every day, sometimes more than once a day (as recently as yesterday there were a number of pricing changes with most lenders), so the cost/credit for any given rate can, and probably will, fluctuate on a daily basis.
Many people will tell you to watch the stock market (when stocks go up rates tend to go down, and vice versa) or the 10 year treasury (as the bond market generally moves in the same direction) to see what mortgage rates are doing/what will do, and often they do a great job of this, but this is bad advice! It isn't always reliable.
The only reliable data you can really follow is the Mortgage Backed Securities coupon your rate is based on. This isn't the easiest data to find, at least on a real time basis. But there are websites out there that can show you where the market is moving, just with a delay. The rates you are being quoted are probably based on the 3.5% GNMA coupon. That is the one to watch to track and/or predict what it is doing day to day, or even minute to minute...
When are you closing? If in the next 30 days, has your loan officer talked about locking in your rate yet? If you are closing soon I see no reason why you aren't locked yet. The risk of rates getting 0.25% worse is much higher than the possibility that they get 0.125% better right now.
Sincerely,
Greg
- shapiroamg
- Contributions:3058
or chat with the professor....he knows his stuff.
At 4% for an FHA mortgage that lender credit should be a lot more than .25 to 1%. If you have a 660 credit score and the loan officer was making 2 points the bare minimum credit would be around 3%.
What is your loan amount?
What is your loan amount?
- shapiroamg
- Contributions:3058
That is the daily change that can happen to rates. String along enough good or bad market days together in a row and you will see rates move up or down.
Things that make rates change include the stock market, bond markets, economic news, political news, world events. Litterally anything and everything depending on the day.
I would also check around, while I am in a different area and rates can be different region to region, I think you might find a rate under 4% with a credit back.
Check with Paul:
http://www.zillow.com/profile/Paul-Mondello/
Things that make rates change include the stock market, bond markets, economic news, political news, world events. Litterally anything and everything depending on the day.
I would also check around, while I am in a different area and rates can be different region to region, I think you might find a rate under 4% with a credit back.
Check with Paul:
http://www.zillow.com/profile/Paul-Mondello/
Why does my lender credit fluctuate?
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