Welcome to Mortgage Guide
Mortgage Financing Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Playing Mortgage Rate Roulette
from: Mortage & Debt FactsMortgage rates are rising due to more demand for mortgage products. Even though the Federal Reserve has tried to influence the home mortgage industry by leveraging the discount points charged to lenders, it’s not a one-to-one relationship.
Mortgage rates are more susceptible to supply and demand of the actual mortgage products and competition between lenders, rather than some arbitrary rate the Federal Reserve charges bank who are borrowing money. So, there really isn’t a real way to time your entrance into the home buying market by waiting for interest rates to drop. Instead, they may rise no matter what the Federal Reserve does to try to influence the markets.
On the other hand, they could drop but there’s no way to tell until after the fact. So, if you want to buy a home, don’t play mortgage rate roulette. Instead, take the long-term view and realize that no matter what happens this may be an ideal time to buy a home if you have great credit.
Historically Low Mortgage Rates
If you take a look at how the mortgage rate offered by lenders has changed over the years, Bankrate.com estimated that the average 30-year fixed rate during the last 22 years was 7.99 percent. That’s because in the decades of the 80’s and 90’s rates were much higher than they are today. We only started to see less expensive rates being offered in the years in the 2000’s.
So, while you may not get the best rate possible (if rates drop), historically you will probably get a better deal than many in the years past. So, if the rate inches up a small percentage, it may cost you more in the long run to finance your mortgage, but you will still pay less than if you had done it in the 80’s and 90’s.
Locking in the Rate
In fact, there is probably more likelihood that mortgage rates might increase as the economy starts to recover and demand for mortgage products increase. Of course, this may be a few years down the line, but you can always lock in your rate when you qualify for the loan.
This is one way people help to take the worry out of mortgage rates increasing while they are looking for a home. Instead, they qualify for a mortgage first, lock in the rate, and buy the house in the period of time allotted by the rate lock.
It makes looking for a home a little less stressful when you already know what you will be paying and for how long.
Mortgage Financing Specific links
Mortgage Financing News
PRESS RELEASE: Freddie Mac Says Historic Lows For Fixed Mortgage Rates Hold Steady - Wall Street Journal
 WRAL.com | PRESS RELEASE: Freddie Mac Says Historic Lows For Fixed Mortgage Rates Hold Steady Wall Street Journal "Mortgage rates were virtually unchanged this week with fixed-rate loans remaining at record lows and helping to drive homebuyer affordability. The National Association of Realtor's Housing Affordability Index reached an all-time record high in the ... Freddie Mac Repurchase Policy Is MBS Investors' Latest Worry Freddie Mac Prices $1 Billion Reopening of 1.00% Five-year Reference Notes ... |
Not a farmer? You can still get 100 percent USDA financing - Fox Business
Not a farmer? You can still get 100 percent USDA financing Fox Business By Michele Lerner Homebuyers looking to secure a mortgage may find help from the US Department of Agriculture (USDA) -- and they don't even need to plow a field to be eligible. Two USDA loans -- the Single Family Housing Guaranteed Loan and the Single ... |
Swedish Banks' Margin On Mortgage Loans Widens - Fox Business
Swedish Banks' Margin On Mortgage Loans Widens Fox Business STOCKHOLM – The margin between mortgage rates and Swedish banks' financing costs have increased in recent years and was 1.1 percentage points at the end of the first quarter, Sweden's Financial Supervisory Authority said Thursday. |
New York Mortgage Trust Arranges Long Term Financing Secured by Multifamily ... - MarketWatch (press release)
New York Mortgage Trust Arranges Long Term Financing Secured by Multifamily ... MarketWatch (press release) ... via COMTEX) -- New York Mortgage Trust, Inc. (NASDAQ:NYMT) ("NYMT" or the "Company") announced today the completion of a re-securitization of commercial mortgage-backed securities collateralized by multifamily mortgage loans ("Multifamily CMBS"). |
American Capital Mortgage Investment Corp. Announces Pricing of Public ... - MarketWatch (press release)
American Capital Mortgage Investment Corp. Announces Pricing of Public ... MarketWatch (press release) BETHESDA, Md., May 24, 2012 /PRNewswire via COMTEX/ -- American Capital Mortgage Investment Corp. (NASDAQ:MTGE) ("MTGE" or the "Company") announced today that it priced a public offering of 11000000 shares of common stock for total expected gross ... American Capital Mortgage Investment Corp. Announces Public Offering of Common ... 5 12% Plus Dividend Paying Stocks To Buy Today |