Eric Patterson's Discussions

The state of Colorado requires a Lock-in Disclosure Form which you would have signed in the loan application that explains the Lock-in arrangement between you and the lender.Here's the link to the Lock-in Disclosure form to help you identify the document.http://www.dora.state.co.us/real-estate/mortgage/documents/forms/Lock_in_Disclosure.pdf You do have the right to ask your lender for the improved rate, although some lenders will charge an extra fee. To make sure there are no unwanted costs with the new interest rate you should request an updated Good Faith Estimate from the lender as well as the Lock-in Disclosure confirming the rate has been locked.

The last two days Mortgage backed Securities have given up almost all of their gains from the beginning of the week. Rates have been volatile as a result and may not be improving soon.For today a primary residence Jumbo Loan, with the borrowers mid credit score is 720 or better and the Loan Amount is 80% or less of the appraised value accepted by Underwriting the interest rates for Thursday 6/18/09 are.30 Year Jumbo is at 6.250% - paying .500% in points.20 Year Jumbo is at 6.000% - paying .375% in points.15 Year Jumbo is at 5.600% - paying .250% in points.Ask the lender for your "Lock-in Confirmation" which they should be able to provide today. This will show you the rate that was locked, terms of the loan; costs, and most important the Lock expiration date.

Paying extra towards principal acts to accelerate the amortization of your mortgage so the date the loan expires will shorten. Paying extra no matter the amount will not lower the monthly payment.For example if you were paying an extra $100 each month on a $200,000 loan with a rate of 5.500% over 30 years the amortization period would be reduced by 5 years and you would save over $42,000 in interest payments.  

djzag9,Here is a link to a free ARM Calculator that may help answer your question. http://www.vertex42.com/ExcelTemplates/arm-calculator.htmlThis excel spreadsheet allows you to calculate additional payments to principal and estimate the amortization of the loan.

Nic, that 30 Year quote at 7:12 am was a mistake on my part. If you read the lender note I'm clearly describing a 15 Year Fixed but for some reason when I used my "saved" Conforming 15 Year Fixed loan scenario it uploaded the 30 Year Fixed costs. I'm still new to the system and have been more diligent in reviewing the "saved" loan quotes before clicking submit.The second quote posted at 8:46 am is the corrected version of the above quote and is still valid as of 6/22/09. Feel free to check TB&W rate sheets on that day to confirm the pricing.Could someone please tell me why we can't delete our own loan quotes?

Thanks Clay!

Mortgage Backed Securities are rallying today and have already broken though their 25 and 200 day moving averages despite the Treasury auctioning off $27 billion in 7 year notes. If Mortgage Bonds close above these moving averages we may see improving mortgage rates in the short term.