mortgage rates?

Question

ok today my bankes mortgage rates went up from 6.85 to 7 with no points. I cant lock until july 10th because our house wont be ready to close until aug 10. should i lock as soon as i can or do you think rates will drop off towards the end of july begining of aug.

Answer 1

I would suggest either way also, but try looking at some sites that will provide rate sheets and maybe that will give you a bit of an insight.

Answer 2

different mortgage solutions exists, I have outlined some below

(I would also suggest you read : http://umgarticles.atspace.com/mortgage.htm)

Pension Plan
Using a pension plan to accumulate the balance of your mortgage is a tax free saving scheme. The balance of your house will be saved over a period of time until you can pay your final balance. If you do intend to use a pension fund to save for the balance of your house, consideration should be taken into account to open another pension fund for retirement purposes too.

ISA Plan
With an ISA plan you invest in stocks and shares via an Individual Savings Account (ISA) - which is a tax-free method of saving. This method of saving may not be suitable for most borrowers. Before considering this option you should consult with an independent financial adviser.
Endowment
An endowment is still the most common type of interest only mortgage which also provides life assurance cover and a fixed payment for investment. The endowment policy along with the interest only mortgage should in effect end at the same time, leaving you with the ownership of your home and nothing to pay. Endowments have undergone much criticism; this is due to investors being promised high returns from their investments. However lately this has not been the case, borrowers have found their investments have been as good as expected and a shortfall in the end amount of invested cash will not match the amount owed on the current property.
Taking into account the recent problems that have arisen regarding endowment policies it is worth remembering that returns on endowment policies have been pretty good, however you do need to see the term out in full. Also endowments do provide life assurance as part of the actual policy, so in the unfortunate event of a death the mortgage balance is paid in full.
Advantages of an interest only mortgage
• Your investments and savings could accumulate more than the required amount to cover the final payment; this could leave you more cash for your own personal use.
• Some plans have good tax benefits and help reach the required amount it a quicker and cheaper rate.
Disadvantages of an interest only mortgage
• In the unfortunate event of your investments not acquiring the designated amount of cash to cover the loan repayment, the investor could face a shortfall which they will then need to pay. If you are worried about a shortfall on your investment, you should keep in touch with your investor and request regular updates on the situation of your endowment. If the worst comes to the worst, you can increase payments to compensate for the loss of investment.
• Cashing in your endowment, ISA or pension could have adverse effects on the amount of money you have saved over the past however many years. If you do decide to cash in any existing policies you may be subjected to a penalty, this could be a cash amount specified by the investment company/lender. Please seek professional advice if you are worried about the end results of your finances, don’t be too hasty as most policies accumulate more of the cash in the final year

for a complete informational package I suggest you visit one of the many mortgage informational sites the best free one in my opinion is :

also read http://umgarticles.atspace.com/mortgage.htm

Answer 3

That is still a good rate. If you would like to lock, now would be the time to do it. If you would like a lower rate, then I would offer you 6.75% locked in for 60 days if that is needed. This will not last for long, but I can currently offer this discounted rate to you.

If you would like to know more about myself, my company and this awesome rate, then you can contact me at timothy.kazee@americanhm .com and we can talk more about it.

Good luck!!!

Answer 4

I would lock as soon as you can. The rate is not bad and it will not be that much of a drop if rates do go down.

Answer 5

Rates are likely to rise again as the world gets more accustomed to Bernanke. They might not raise...if... However, they won't decrease in the short term future.

Answer 6

You can do a 45 day lock - talk to your bank or broker.

Answer 7

It's a risk either way. Good luck with that.