Did you hear? Mortgage rates are surging. That should be no surprise. All we had to do was look at the sharp sell off in US treasuries and you know that mortgage rates would follow suit. The 30 year fixed rate mortgage rate jumped to 5.29%, up from 4.91% just a week ago. On April 2nd the rate was 4.78%.
Just to give you an example in real dollar terms, let's take a $200,000 30 year fixed mortgage at 5.29%. Your monthly payment would be $1109.37 and your 30 payments would be $399,372.25. At 4.91% your monthly payment would be 1062.67 and your 30 payments would be $382,560. So in real dollar terms your cost has risen $16,812.00. In addition lenders are charging 0.7% in fees and points, unchanged from the previous week.
For adjustable rate mortgages the rate rose from 4.69% to 4.81%. Fees and points were at 0.6% unchanged from the previous week.
So what we have here are the two secrets of financing your mortgage. They are the rate and the time. If you can possibly swing a 15 year mortgage, you will save tons of money. Use these same two secrets if you are refinancing your home.
Some consultants are advising their clients to lock in the present rates as rates often change quickly. Whether or not you choose do this is your own personal decision. However do take the time to calculated your monthly payment for both a 30 year mortgage and a 15 year mortgage.You'll be amazed at the savings.
Are you thinking about refinancing your mortgage?
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Reader Comments (Page 1 of 1)
6-04-2009 @ 4:43PM
Ben said...
Does anybody really think mortgage rate could stay under 5% forever?
on the other hand, this is great news for people on the sideline.
6-04-2009 @ 5:43PM
ilikeasianladies said...
Obama fans are nothing but sheep being lead around by a
corporatist leader..
corporatism
ideology
Italian corporativismo, also called corporativism
Main
the theory and practice of organizing society into “corporations” subordinate to the state. According to corporatist theory, workers and employers would be organized into industrial and professional corporations serving as organs of political representation and controlling to a large extent the persons and activities within their jurisdiction. However, as the “corporate state” was put into effect in fascist Italy between World Wars I and II, it reflected the will of the country’s dictator, Benito Mussolini, rather than the adjusted interests of economic groups.