mortgage rates trends
By Rony Walker
Mortgage rates (mortgage rates trends) are not for the faint of heart.
The Value of Research
The best way to alleviate your worries about taking out a mortgage is by picking the best mortgage rates (mortgage rates trends) there are in the market. By taking out the right mortgage for the right price, you reduce the dangers of getting into difficulties over the payments. The mortgage rates (mortgage rates trends) you have to pay vary from lender to lender. Mortgage rates may vary from one type of mortgage to another. To ensure that you get the lowest mortgage rates possible, do your research. Scour the market for options.
It is possible to make the nature of the market work for you. For example, you may have to make the choice between fixed rate mortgage and adjustable rate mortgage. Fixed rate mortgages require slightly higher payments, but it's advisable to choose this because it provides you with peace of mind. You do not have to fear changes in the volatile market. If, however, you can absorb the market fluctuations that come with the lower mortgage rates (mortgage rates trends) of adjustable rate mortgages, then choose adjustable rate mortgages.
Short Term Rates Versus Long Term Rates
Mortgage rates (mortgage rates trends) may vary according to the duration of payments. Typically, the shorter the term, the lower the rate will be. Although this rule of thumb is not infallible, compiled data of trends show that short-term rates are always lower than long-term rates. In considering whether to choose long term mortgage rates or short term ones, think of where your interest rates are headed.
Bi-weekly Or Weekly Payments
The option of paying weekly or bi-weekly is incorporated into most mortgages. Many utilize this option because it puts them in a better position to meet payments. For one, the frequency of payments will ensure that your mortgage is paid off four years sooner. For another, it is easy to maintain payments under this arrangement because most employees are paid on a weekly or bi-weekly budget. Thus, every cash inflow is matched by an outflow in the form of mortgage payments.
In the end, what it all boils down to is that before you take out a mortgage, you carefully consider all the options at your disposal. Compare a range of mortgage rates (mortgage rates trends) and lenders and see which and who offer the best repayment periods, the lowest terms, and the highest borrowing power.
After all, if you took the time to date the girl before proposing marriage to her, there is no reason you cannot take your time and get to know everything about mortgaging first before taking out a mortgage. After all, you and your repayment will be married for some time. To quote an old and oft-quoted proverb, "Marry in haste, repent at leisure."
Want to compare mortgage rates (mortgage rates trends)? Visit our site today and get access to home loan lender rates from various competing home mortgage lenders.
mortgage rates trends
Monday, November 16, 2009
Mortgage Rates - Three Tips for Getting a Good Deal - Mortgage Rates Trends
Thursday, October 22, 2009
Florida Mortgage Rates (Mortgage Rates Trends)
mortgage rates trends
By Ken Marlborough
Mortgage rates in any market typically vary weekly or even daily. For the month of October 2005, interest rates for a 30-year fixed rate mortgage averaged slightly below six percent, which is comparable to the national average for the same period. Average interest rates for a one-year adjustable rate mortgage were slightly below four percent.
There are several factors that may affect your mortgage rate. In general, the more you borrow and the longer the term, the higher the rate. If you have a good credit history, a monthly income greatly in excess of your expected monthly payment, and are able to make a larger down payment, these factors can all drive the rate on your mortgage down. Rates on adjustable rate mortgages increase or decrease as interest rates increase or decrease, respectively. Your mortgage broker’s points can also affect your rate. Points are basically broker’s fees, with one point being equivalent to one percentage point of the total value of the loan. If a broker is paid more points upfront, in general, you will pay less interest for the life of the loan.
It is a good idea to clarify exactly how brokerage fees are structured. Closing costs are paid by the lender and built into the mortgage in the form of higher interest rates. You should find out what rate reductions may apply if you pay some or all of the closing costs upfront.
Trends in the yield of the 10-year Treasury note are usually a good predictor for rates of 30-year fixed rate mortgages, because most 30-year fixed rate mortgages end up being paid off or refinanced in about 10 years and are therefore somewhat similar to the 10-year note.
Florida Mortgages provides detailed information about Florida mortgages, Florida interest only mortgages, Florida mortgage brokers and more. Florida Mortgages is affiliated with Florida Refinance Mortgage Loans.
mortgage rates trends
Saturday, October 3, 2009
2009 - 2010 Mortgage Rates - Predictions, Trends, and Forecasts (mortgage rates trends)
mortgage rates trends
By Michael Petrone
Here are my mortgage rate predictions, trends, and forecasts for the rest of 2009, and a few months into 2010. When a homeowner gets the lowest interest rates they can, they are saving the most money possible. With mortgage refinancing and home loan modification on the rise, a lot of homeowners would benefit from having an idea of what to expect from interest rates. Here are my predictions, and how I made them:
-Right now 5.19% is the average mortgage rate for a typical homeowner and a fixed rate 30 year mortgage.
-Mortgage rates were as low as 4.69% for the same loan earlier in the year.
-I predict that in October of this year, 2009, mortgage rates will drop from 5.19% to their prior lows of 4.69% for a 30 year fixed rate home loan.
Why do I think mortgage rates (mortgage rates trends) will drop to 4.69? I think that the only reason that mortgage interest rates went up .5% to their current rates of 5.19%, is due to mortgage lenders and banks being overwhelmed by the amount of homeowners looking to take advantage of the low interest rates, and the Governments mortgage bailout plan. The combination of these two things quickly drew the interest of millions of homeowners who applied for a mortgage refinancing or modification.
My predictions reflect the fact that I think that around October of this year, 2009, the mortgage lenders and banks will be caught up with the existing home loan modification and refinancing applications. At this point, they will be looking for a new wave of homeowners who need a more affordable mortgage. The interest rates, I predict, will be lowered to their prior lows to spur interest in mortgage refinancing and home loan modification.
If a homeowner can, they should wait a little to see if the mortgage rates lower a little. However, if your home is at risk of being lost to foreclosure or mortgage default, take action now.
At my site I will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them. Learn the right way to refinance or modify your home loan at my site: http://www.refinancingcondo.com
mortgage rates trends
Mortgage Rate Trends Predicting Low Mortgage Rates?
mortgage rates trends
By Jesse R Wojdylo
Many analysts believe that the recent downward mortgage rate trend has been broken. When you look at a long term chart of rates, it is very obvious to see that they have been going down for over two decades. It is hard to compare the early 1980s to any time in recent history as there was hyperinflation in the United States and home loan rates were above 16%. This is highly unlikely to ever happen again, but if the Federal Reserve continues to spend money, we very well may try to test that level.
Mortgage news has continue to deliver the current story of the 10 year treasury rate correlating to the 30 year fixed rate mortgage. If you look at a long term chart, since 1971, you will see that there is a strong relationship between the two. There are very few times in this short history that the two sets of numbers separated in a large way. With this being known, one would think that they would go in tandem either up or down. Since the beginning of 2009, the 10 year has been in a strong uptrend which has not been the case for overall rates. The mortgage rates trend continued down.
At the end of May and the beginning of June that all changed as mortgage rates jumped enormously to coincide with the 10 year treasury rate. Over the last week we have seen the 10 year treasury rate pull back quite a bit, so one would think that rates would do the same. This would mean that the overall downward trend in mortgage rates remains intact. Only time will tell.
Subprime Blogger offers information on mortgage rate trends and how they affect the economy and ultimately your life. The 10 year treasury rate is something every home owner should keep up to predict future mortgage rates.
mortgage rates trends
Tuesday, September 22, 2009
Mortgage Rates Predicted to Continue Upward Climb (mortgage rates trends)
mortgage rates trends
By Martin Lukac
Mortgage rates could hit 7% or higher, according to economists. With the 17th consecutive boost in benchmark short-term interest rates by the Federal Reserve last week, the ripple could be felt in the mortgage industry before long.
In fact, rates have risen in anticipation of the Fed's actions. The ripple will extend into higher interest rates on credit cards and home equity loans.
While the Fed has no direct control over the mortgage industry, mortgage rates have been moving higher. Freddie Mac reported last week that the national average for a 30-year fixed-rate mortgage has risen to 6.78% -- the highest level since May 2002.
Borrowers with adjustable-rate mortgages will be more affected than those with fixed-rates. For those just now considering adjustable-rate mortgages, the benefits are much less than even one year ago. With the gap between fixed-rates and adjustable-rates narrowing, the overall savings of an adjustable rate is lessened drastically.
The rising interest rates are intended to slow down consumer spending and other economic activities that indicate inflation. The economy has grown at the fastest pace in two-and-a-half years in the first quarter of 2006. The housing sector is one area, though, where growth is slowing.
After the Fed's increase on Thursday, the majority of US banks raised their prime rates to 8.25%, up from 4% in 2004. That means that many homeowners with home equity lines of credit are paying 8.25% or more on the debt. Many experts expect to see many homeowners refinancing this debt back into a primary mortgage -- where rates remain slightly lower.
"We've been spoiled with such low rates over the past few years," said Scott Goodrich of Monterey Bay Mortgage. "People's memories are short and young folks who have only experienced low rates, when they start seeing 7%, that might have an impact."
Doreen Woo Ho, president of Wells Fargo's consumer credit group says that consumers are "realizing it's more expensive to borrow money now."
Wells Fargo and other lenders are now offering home equity lines of credit with initial fixed-rate periods. This makes the repayment amount more predictable for a certain period of time.
Despite rising rates, Americans are still going to be buying homes and taking out equity lines of credit says Woo Ho.
"We certainly still have a healthy number of consumers who still see the need to borrow," she said.
Martin Lukac represents RateTake Refinance Rate marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Help and you'd be surprised what we can do together.
mortgage rates trends
Sunday, September 13, 2009
Mortgage Rates and Current Mortgage Rates
mortgage rates trends
By Christian N
Current mortgage rates are at an all-time low providing homebuyers many loan options throughout the buyer friendly housing market. Present mortgage rates are very appealing to consumers looking to purchase their first home, move up the ladder to an upscale house, or refinance the present home. Current mortgage rates offered through many mortgage loan companies are highly competitive, offering consumers leverage while negotiating the best rates for their financial situation. Varying mortgage rates are found among the many mortgage loans that offer adjustable and fixed rate loans. It is possible to get extremely low mortgage rates today as a result of the continuing trend in low, current mortgage rates.
According to many financial specialists that closely watch mortgage rates and their fluctuating trends, it is not known how long the current mortgage rates will continue. If you are considering purchasing a home or refinancing your present home, the current mortgage rates could be the last, low rates you may see for some time. Of course, low mortgage rates are not the only consideration in determining the best mortgage for your circumstances. Your overall financial situation will also determine which of the current mortgage rates you choose within your loan package. Current mortgage rates affect an adjustable or fixed rate mortgage loan.
Your down payment amount plays a large role in determining which mortgage rates you are offered. Many consumers today are only able to put down 10% or even 5% of a house purchase price toward the down payment. This will automatically result in higher mortgage rates offered by your lending source regardless of the lower trend in current mortgage rates. A down payment of 20% or more will significantly affect your ability to secure low mortgage rates. Other factors affecting the best, current mortgage rates you qualify for, will be your credit history and your earning-to-debt ratio. Lending sources generally offer the best, current mortgage rates to those who have an impeccable credit report, large disparity between earnings and personal debt and the amount of down payment that is placed.
Lending sources offer the best mortgage rates to consumers with these credentials because the risk of default is very slim. However, many American homebuyers do not have a perfect financial history and lenders are expert in offering many loan options with differing mortgage rates. The current mortgage rates are definitely consumer friendly and it is to your best advantage to shop around the competitive lender market for the best loan package you can find. Many online sources offer free consultations to help you determine your best option. "For the Son of man is come to seek and to save that which was lost." (Luke 19:10)
For more information, visit:
http://www.christianet.com/articles/
http://www.christianet.com/
mortgage rates trends
How do I choose the right mortgage strategy?
mortgage rates trends
Finding the appropriate mortgage action can beggarly a lot to you in the continued run. It can save you bags of dollars over the activity of the mortgage loan; on a $100,000 mortgage, it can calmly beggarly as abundant as $10,000 in total. What you absolutely appetite to be doing, instead of award the best mortgage ante is article absolutely different.
How do I acquisition the way to accept the appropriate action for me? We accept a actual accessible acknowledgment to that question. Get in blow with a specialized mortgage able who knows how to actualize customized mortgage solutions for his barter (prêt hypothécaire). The acknowledgment is easy, but the affidavit for this are not. -We can't adumbrate with accurateness the administration of absorption rates, or how aerial or low they will go in the future. - Economic factors of today charge be considered. -A action charge be abundant for anniversary client. Don't apprehend anyone who is not accomplished to be able to abode these issues. To acquisition the appropriate solution, you accept to accept a mortgage adviser who has the adeptness to accomplish the able analyses of the markets as able-bodied as your own alone situation.
No one can advice you accept the mortgage action for you unless he has affectionate ability of anniversary mortgage action that is accessible (both the acceptable credibility and the bad points), can account area you angle in the absorption amount aeon and can accomplish an accomplished assumption about the absorption amount admonition over the abutting decade.
The absorption amount cycles. There are about three scenarios and two axiological rules to accept absorption ante (all this could booty up several volumes, but we're activity to accumulate it as simple as possible).
Scenarios: 1. Ante are about accretion (1950-1980) 2. Ante are about abbreviating (1982-2003) 3. Ante are about abiding (2003-2006).
Each of these scenarios demands a accurate strategy. It could be adverse to accept a action conceived for bottomward ante and again see them climb.
In adjustment to accept and assignment with these trends, two rules of the abridgement charge to be applied:
1. Absorption ante about chase the aggrandizement rate. This agency that if we see the CPI (Consumer Price Index) go up, we can apprehend an access in absorption rates. 2. Absorption ante reflect the bloom of the economy. In a able economy, absorption ante will be college because there is added appeal for money, and back the abridgement is beneath strong, absorption ante will be lower.
We cannot adumbrate absorption ante with absolute accuracy, but we apperceive that absorption ante over the aftermost thirty years were averaging 9.6%, while they are now about 5%. (pour un prêt hypothécaire)
What are the altered strategies?
There are several basal strategies, anniversary able to be accumulated with several options, and it is generally advantageous to amalgamate two strategies to booty advantage of the market. All this to say that it is bigger to argue an accepted mortgage professional.
The basal mortgage strategies:
* 5 times 5 - renew a mortgage bristles times with a anchored appellation of bristles years. * Abiding - a fixed-rate mortgage for 15, 18, or 25 years. * Variable amount - mortgage whose amount changes with the abject amount of the Bank of Canada. * 'Smith Maneuver' and the banknote breeze dam - a action that allows you to eventually abstract absorption paid on a clandestine abode from your claimed taxes (salaried or self-employed worker). * Added retirement - an able address of application the disinterestedness in your home to supplement retirement income. * No bottomward acquittal - This action allows one to account the accumulation and buy appropriate abroad after a bottomward payment, rather than hire an accommodation while you accrue the minimum bottomward acquittal of 5%. * Beneath than absolute acclaim - advice adjustment a poor acclaim appraisement in adjustment to access an accomplished amount in the future.
By comparing these strategies you will apprentice to acknowledge what acceptable mortgage planning (pret hypothecaire) can do, and adore accumulation over the absolute activity of your mortgage. Don't balloon that a acceptable action is 21 times added admired than artlessly negotiating the best absorption rate. Anniversary action deserves its own claimed account and should be accompanying with your abiding objectives and the accepted accompaniment of the Canadian economy.
All of this credibility to alone one thing-you absolutely charge a able who is attractive out for your best interests in adjustment to acquisition the absolute mortgage accommodation strategy. The best affair about this access is that you will apprentice a lot about your bearings and the economy, and this apprenticeship is all free!
About the Author
Gregory is an Accredited Mortgage Professional (AMP). To get more information on mortgage - prêt hypothécaire, please visit: Hypotheque - Mortgages
mortgage rates trends
Mortgage Rates - fixed? capped? what does it all mean?
mortgage rates trends
By Mortgage Rate Options
Residents or -to-be home owners aural the UK acquisition themselves in one of the best arena breaking and aggressive mortgage markets in the world. The accompaniment keeps out of the bazaar completely, and about all loans are financed by architecture societies, acclaim unions or acreage lenders such as banks.
The bazaar was decidedly deregulated in 1982 and aback again there has been a abundant bulk of addition and an access in the assortment of mortgage strategies by companies in adjustment to allure clients. This is why a array of mortgage types accept developed and additionally why it is important to get absolute mortgage advice
Since those who are lending the money get their costs from money markets or deposits, best mortgages blooper into a capricious rate; either the company’s accepted capricious amount or a tracker amount accumbent to the repo amount of the BoE (Bank of England). At the outset, however, the afterward allurement deals may be offered in business mortgage deals; anchored rates, capped rates, abatement rates, or banknote aback options.
A anchored amount provides a connected absorption amount for a set period. This best is added applicable back taken out over the continuance of added than bristles years (minimum) aback the anchored ante over below acceding become too aerial to accomplish the accord worthwhile.
A capped amount refers to a agnate acceding to the anchored rate, about with a capped amount the absorption can alter below a assertive akin (the cap) while never beyond the cap. It is not abnormal for a mortgage of this blazon to accommodate a “collar” in the deal, apropos to a minimum absorption akin paid every month. Capped ante are usually offered over agnate acceding of continuance to anchored rates.
A set allowance of abatement is begin in mortgages utilising abatement rateoptions. Typically this will accord a abatement (e.g. 2%) on the company’s accepted capricious rate, or as a abatement on the added absorption aloft the BoE rate. The abatement amount can abatement or access according to a preset arrangement over the advance of an agreed time frame.
The fourth advantage is to booty out a cashbackmortgage, which agency that a agglomeration sum of the accommodation (say for archetype 5%) is avant-garde to you up front. This can prove advantageous in accouterment basic for repaying acclaim cards, loans or for refurnishing your new home. This accord usually comes with a accepted capricious amount or a tracker mortgage rate.
As if these amount differences are not ambagious abundant to the aboriginal time mortgage buyer, abounding mortgage affairs amalgamate rates, such as giving a four and a bisected percent anchored absorption amount for the aboriginal two years, and again jumping beyond to three years at tracker BoE ante additional aloof beneath one percent interest.
One added point to booty into application back artful the claim of your mortgage is the artifice of an aboriginal claim allegation if you pay off your mortgage eventually than the mortgage aggregation anticipated. This is because abounding bartering mortgage companies action ante lower than the bazaar standard, and appropriately an aboriginal claim allegation helps the aggregation achieve potentially absent profit.
mortgage rates trends
Wednesday, July 29, 2009
How Are Mortgage Rates Set?
mortgage rates trends
By Claudette Pendleton
Mortgage Lenders and the Secondary Market
Mortgage lenders may control who gets approved for a mortgage loan. However, they do not control the interest rate given to the homebuyer for the loan. Lenders have very little to do or say about the rate charged for a home loan. Large banking conglomerates like Wells Fargo and Bank of America also have to submit to a higher power that governs mortgage rate control--that power is the secondary market.
Fannie Mae, Freddie Mac and Other Mortgage Investors
The secondary market involves agencies such as Fannie Mae, Freddie Mac and various other mortgage investors. These organizations were started with the help of the federal government many years ago. The purpose of establishing these agencies is to help the process of mortgage lending to be more effective and resourceful. Fannie Mae and Freddie Mac are two very huge and prominent mortgage investors. They and the various other large investors purchase loans that lenders have made. After purchasing these loans, they either hold them in their portfolios or bundle the loans together establishing mortgage-backed securities that are then sold to Wall Street, mutual funds and other investors. Wall Street and the other financial investors then trade the mortgage-backed securities in comparison to how Treasury securities and bonds are traded.
Consequently, it's not the mortgage lenders, but investors who possess the power to control mortgage rates. And just as interest rates go up and down in the stock market, when financial news proposes that the economy is doing very well and looking good, investors demand higher yields, resulting in lenders being forced into raising mortgage rates.
When financial news proposes that the economy is on a downward spiral, consumer interest rates will drop because the federal government will typically have to cut rates in order to get the economy back on track.
Watch for Financial Trends
Interest rates shift in phases. Generally, after an extended rise in interest rates, there is a slow drop in rates. There are some who monitor 10-year Treasury bonds as a indicator as to how the rates will be. They understand that when bonds go up, interest rates go down--and, when this happens, interest rates will go up.
In order to receive the best achievable mortgage rate, it is vital that consumers watch for the financial trends and signs that indicate changes in the interest rates. Pay close attention to financial news before purchasing a home.
mortgage rates trends
Saturday, June 20, 2009
How to Check Local Mortgage Rates
mortgage rates trends
By mommierose
It's easy to check local mortgage rates if you know where to look. This article will explain an easy way to check local mortgage rates.
Instructions
Step 1
Go to bankrate.com. Bankrate.com is a highly recognized website for information on the economy, personal finance, and many other topics of interest involving money. Not only can you check local mortgage rates on bankrate.com, but you can also find out how big a mortgage you can afford, as well as read advice on how to best find local mortgage rates in your individual situation.
Step 2
Click on the "Compare Rates" tab at the top. This tab is between the "News and Advice" tab and the "Calculators" tab.
Step 3
On the upper left portion of the screen, you'll see "Compare Local Interest Rates". The first drop-down menu is for loans. The default in the drop-down menu is "Mortgages". This is what you will want to select to check local mortgage rates. To the right of the drop-down menu is a "Go" button. Click the "Go" button.
Step 4
This will take you to a screen with a header of "Compare Mortgage Rates". Use the drop-down menu on the far left to select your state. Click the "Next" button on the bottom of the drop-down menu. The other "menu" (on the left) is an advertisement.
Step 5
The next screen has a drop down menu entitled "Choose the city nearest you." Find the city nearest you in the drop-down menu and click on the city name. Then click the "Next" button.
Step 6
The next step, on the next page, is "Choose your loan amount". Type in your projected loan amount. Be sure to also select your down payment from the drop-down menu below. The default is set at twenty percent.
Step 7
Next you'll choose your mortgage options. Notice you can only choose one option at a time from this menu. The default is set to a thirty-year fixed mortgage. Find the type of mortgage you are interested in and click the next button. You can always go back later and compare other mortgage options. You can also change your location or your loan amount.
Step 8
Finally you'll land at the page to check local mortgage rates. You can compare mortgages by lender, APR, origionation points, rate, fees in APR, lock, or estimated payment. If you hover your mouse over any of the above items, a pop-up will appear which briefly explains each term.
Resources
mortgage rates trends
Monday, April 27, 2009
How to Track Mortgage Rates
mortgage rates trends
By 02SmithA
Mortgage rates are moving much more quickly than normal right now because of the economic instability. Here is a guide of how to track the latest graphs and trends of mortgage rates.
Instructions
Step 1
The government has taken unprecedented moves in the last few days to attempt to shore up the financial system in the United States. Whether this plan works or not is yet to be seen, but it certainly is making mortgage rates move in a big way.
Step 2
Bankrate is the best place to keep track of everything mortgage rate related. The site has a terrific graph of the trend for a national average of the 30 year fixed mortgage, which I have included in the resources. Be sure to check this often and see which way the fixed mortgages are moving now. Find low rate mortgages in one click of a mouse.
Step 3
Want to customize the mortgage rates down to your area? That is very easy to track as well by simply putting in your zip code and selecting the type of mortgage rate you wish to be given. This is very useful in comparing mortgage rates among local lenders.
Step 4
Calculate it! Calculate it! Finally, if you want to break it down even farther, bankrate has a terrific mortgage rate calculator on their site which will show you the specific of monthly payments on a perspective mortgage in your area. Take advantage of these very useful tools in a time where rates move very quickly!
Tips & Warnings
* Keep up to date with this information often.
* Search around for the cheapest mortgage rates
* Don't settle for a rate too quickly, shop around!
Resources
* http://www.bankrate.com/brm/mortgage-calculator.asp
* http://www.bankrate.com/brm/graphs/graph_trend.asp
mortgage rates trends
Saturday, April 11, 2009
How to Make Mortgage Rate Predictions
mortgage rates trends
By Katie Duzan
Mortgage rate speculation by economists is inevitable. A raise indicates a rising economy, easy lending and more mortgages. A fall occurs in tough times, with lending freezes and there are fewer mortgages. There are a few key indicators that economists use to gauge the mortgage rate's future. Using these tools, it is much easier to accurately predict the future of the mortgage rate. This article discusses those key indicators, and how to make mortgage rate predictions from them.
1. Look to the past. Historical data is a good indicator of what will happen with mortgage rates. Similar situations lead to similar outcomes. Also, recent history reveals the current trend. Further future predictions require more research into past scenarios and their outcomes. Don't jump to conclusions without researching causes. If a market drop occurred in the past, make sure it was the market and not an outside issue, such as financer problems or bad decisions by mortgage companies.
2. Note the current climate. The economic climate dictates whether rates will rise or fall. If the economy is on the upswing, lenders are lending money and mortgages are easy to get. In these times, expect to see the rate rise. However, if money is tight and mortgages are hard to come by, rates will drop.
3. Watch for changes. Key financial players resigning, announcements regarding rates, or planned rate changes have an effect on the market, and in turn on mortgage rates. Major players to watch are the lenders, since they are responsible for financing people into homes. If they begin having problems, there is a good chance the market will droop.
4. Be cautious. Mortgage rates don't jump or drop rapidly. The change in mortgage rate is minute. Don't expect a change of more than a percent of a percent. Keep in mind that the rate will likely never fall to zero or rise above 10 percent, even in the craziest market conditions.
mortgage rates trends
Monday, March 30, 2009
Letting Mortgage Rate Trends Work For You
mortgage rates trends
By Jonathan Andrew
Being handed the keys to a home of your own will make you feel like nothing else on Earth. Home ownership is considered the foundation of the American Dream, and if you are ready to start shopping for a home of your own, you know that you have a very big decision to make. So you need to plan your entry home market, and try to wait until mortgage rates trends are favorable before accepting a home loan.
Once you have committed to a mortgage, you will be stuck with that interest rate even if the mortgage rate trends head down, unless you have opted for and adjustable rate mortgage. Of course you don't want to wait forever to jump into the housing market, because whenever the mortgage rate trends down, more people just like you see an opportunity to purchase their dream homes. When that happens, the supply of available housing shrinks, so the sales prices of homes are likely to rise. And you may end up paying more for your home even if you catch the mortgage rate trends on the way down.
Think About An ARM
An adjustable rate mortgage, as opposed to a fixed rate mortgage, will have an interest rate which fluctuates with the prime lending rate. If the Federal Reserve lowers the prime lending rate then the interest rate you are being charged for your adjustable rate mortgage will also decrease, as will your monthly mortgage payments. So you will not be stuck with a high interest rate as you watch mortgage rate trends fall quarter after quarter.
You can determine current mortgage rate trends by reviewing financial newspapers and following the financial networks. Mortgage rate trends are tied to supply and demand in the housing market, and as the supply of available housing increases, the mortgage rate trends will head down to encourage more buyers to enter the market and clear the backlog.
If, on the other hand, the housing supply is tight, then the mortgage rate trend will head north as lenders can take advantage of the situation and people are willing to spend more just to get into their own homes. This is known as a seller's market, and mortgage lenders love it, because they make their money on the interest on your home loan.
Being Smart Can Require Patient
If you have been watching the housing market for about six months and realize that the mortgage rates trends are heading up, you would be wise to wait until you hear that the number of new housing starts is increasing. This means that the housing market will loosen in a relatively short period, and more new homes become available and the mortgage rates will eventually head down to reflect the larger home supply.
Waiting a few months for mortgage rates to drop can save you tens of thousands of dollars over the life of your home loan. And having as low a rate as possible will be a cushion in case you run into some unforeseen financial difficulty. You want to make sure you will be able to handle your monthly mortgage payments no matter what.
Don't take on the commitment involved in being a home owner unless you are sure you can meet the financial obligations involved. Paying attention to mortgage rate trends is one way to make sure you can really afford the home of your dreams.
You can also find more info on mortgage and mortgage broker. Myfinancialbliss.com is a comprehensive resource to get your all financial solutions.
mortgage rates trends
What Does Determine Your Home Mortgage Loan Interest Rate?
mortgage rates trends
by Prosperity66
There are several different factors that can determine how interest rates are calculated when time has come to enter the home mortgage loan approval procedure. To provide you with a rate that is comparable to other companies and determined by your personal history, all of these elements are taken into account by the bank that you are dealing with. You will find below the factors that will help you to visualise how your bank determines your home mortgage loan interest rate.
Your Credit Rating
One of the points that has an impact on your home mortgage loan interest rate is your credit rating. Many home buyers are aware that the higher the credit score, the less risk that the consumer poses to the company and for that reason a lower interest rate can be provided to the customer. Instead, if the credit rating is lower, then the borrower is generally faced with a higher interest rating which will be reflected in the rate of the mortgage when your credit rating is taken into account with the other aspects that affect a mortgage rating.
It is therefore mandatory to take action in order to inflate your credit score so that you will get a lower home mortgage loan interest rate. Having your payments done on time and using variable types of credit can create a high credit score that will make you able to generate a credit rating that will get you the best rates with the loaner.
The Market
The market depends on many points the interest rate of the economy and the stock market as well as the international rates.
A lesser interest rate is applied to the borrower when the market interest rates are low. When the market interest rates are high then the consumer is generally charged with a higher interest rate. The state of the market is combined with the credit score of the consumer to calculate the home mortgage loan interest rate that will be offered.
Trends and History
Trends and history can also impact the home mortgage loan interest rates that are being offered by banks. They make use of history to forecast the future home mortgage rates. This is associated with the state of the economy to create an interest rate that is feasible to the lending institutions and to the home buyers that are applying for home mortgage rates.
Comparison shopping can save you up to two % on the price of your home mortgage loan interest rate. Although two % may not look like a large sum, it is necessary to realize that too many home mortgage loans are in excess of two-hundred thousand dollars, which could convert into thousands of dollars worth of economies over the entire life of the home mortgage.
About the Author
Prosperity66 purchased a house as a single parent and experienced how difficult it is to borrow such a big sum of money especially if you don't know where to begin. So, if you want more Home Mortgage Help, feel free to visit Home Mortgage A to Z, your Online Guide.
mortgage rates trends
