I got a 2 year fixed loan almost two years ago on my mortgage with money out to clean up credit so I could get a better rate but the rates have rose even higher. Should I lock in now or wait 5 months I have left to see what happens?
2006-09-13 12:13:55 · 5 answers · asked by mamagirl65 2 in Business & Finance ➔ Renting & Real Estate
The average* rate right now for a 30 year fix is 5.95% (with 0.61 points) making a APR of 6.14% and for a 15yr Fixed is 5.65% (0.62 points) making a APR of 5.95%. This is a 5 month low. It is funny intrest rates and gas price drops around election time.
I don't think it will be this low in 5 months so I think you get it fixed. But first speak to a mortgage specialize and try to reduce the points. I vote to lock it in now.
* Check your rate in your City and State
2006-09-13 13:22:31 · answer #1 · answered by plasma71104 4 · 1⤊ 0⤋
There was a news article just last night on the high number of mortgages defaulting. These weren't the high interest ones, these were the more recent low rate mortgages. Which means the fed isn't going to make getting a mortgage easier, too many unqualified people get a mortgage and then can't make the payments.
Lock in your rate, stop "fiddling" with your mortgage and make payments on time. There are other ways to invest your money, improve the property value etc.. Lock in the rate.
2006-09-14 00:54:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋
We're at the end of a fed cycle. The fed raised the fed funds rate multipe times over the past 2 years or so, and have now held during the recent fed meetings. I expect that Bernanke has over adjusted for inflation and tightened too much. With the housing market bubble bursting rates must be kept down or the economy will really tumble.
The economy usually takes about 6 months to react to the fed actions in reportable numbers. Watch for CPI (the leading indicator of inflation) to lag while joblessness and consumer debt increases.
I expect we will see the fed drop rates as early as 2007 and perhaps a new refinance boom in 2008.
Rates will not go up more, in my crystal ball!!
2006-09-13 14:43:59 · answer #3 · answered by pknag 2 · 1⤊ 1⤋
Don't count on interest rates going down anytime soon. I would claim the best rate available now. You can always remortgage "if" the rates turn in your favor.
2006-09-13 12:17:54 · answer #4 · answered by polecat 2 · 0⤊ 0⤋
interest rate will go up again this year.
2006-09-15 03:40:02 · answer #5 · answered by bidia 3 · 0⤊ 0⤋