Portland Metro/Tigard Real Estate News

In this forum we will offer discussions on a wide variety of subjects, but focus on Portland Metro and real estate. Hopefully our insights and experiences will inform, educate, challenge and entertain our readers week after week.

Monday, August 4, 2008

Fixed Mortgage Rates

Have you locked in your mortgage rate. Some people simply haven't been paying attention and think the housing market and mortgage rates are the same as 2005. It is no longer the best idea to wait for rates to drop. More than likely you are going to miss out if you don't act now.

Rates are no longer stable like the used to be and people don't seem to realize that. Many people didn't get their rates locked back then when it would have been easier, and at the time there was no need. Things are different now and things can change drastically at anytime.

If good rate presents itself you need to get it locked in, in writing from your lender. The way things are now, even if the rate dips down it won't be by much and it will be very temporary. You've got to take the deal when you have the chance.

Rates are expected to go up in the next six weeks, and even hit 7% by the end of this year. Every half point of an interest rate increase, the monthly payment on a typical $200,000 mortgage jumps about $70.00. That is around $800.00 a year!

Getting a rate locked in is easier than you might think. As long as you have a contract or a binder on a home the lender should be willing to give you a commitment in writing. A lock is good for 60 days at a very low cost.

http://money.cnn.com/2008/08/04/real_estate/mortgage_rate_lock/index.htm?postversion=2008080405

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1 comment:

Anonymous said...

Mortgage Rate Chart provides you with the US National Weekly Average Mortgage Rates on different loan types and the mortgage rate trends for past 2 years. Things are different now and things can change drastically at anytime. If good rate presents itself you need to get it locked in, in writing from your lender. The way things are now, even if the rate dips down it won't be by much and it will be very temporary. You've got to take the deal when you have the chance. To check out mortgage rates from the Rate Chart, select the loan type and time period for which you'd like to know the rate trend. Mortgage rates vary depending upon individual situations and market conditions. So, request lenders for no obligation free mortgage quotes to know what rates you may qualify for.