Get BuySellPDX by emailOK, most everyone has been tracking the interest rates. Currently the rates are bouncing between 4.5% (on a rockin’ day) and 5.15% (still good). It’s no surprise that good opportunities are short lived and that you need to grab them when they present themselves. This is one of those times. If you have a higher interest rate on your home you may want to consider doing a re-fi, that is if the cost of doing so will balance out in your favor over the expected time you plan to stay in your home. Sure it’s about cutting down your monthly payments but you also want consider how much it will cost you to do the re-fi and how long it will take you to recoup that cost.
Why the disappearing act? Although rates are very attractive now, the picture may be quite different as we head towards the summer. Oil prices may rise as we get closer to summer vacation time, the economic stimulus packages could start to infuse the market, corporate cost-cutting measures could start to take hold, and one big sign is that the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that will undoubtedly result in significantly higher interest rates this summer.
Call me to get the name of a good mortgage broker that can give you the information you need to make the best decisions for you and your family. – Paddo
"Like" BuySellPDX on Facebook
Follow BuySellPDX on Twitter
{ 2 comments… read them below or add one }
Just hang on a bit, I have seen rates heading downward. Example 4.875% – 30 year fixed! Give it a couple of months…..
Rates are dynamic so depending on a number of things your rate may vary from the advertised 30 fixed. Things to consider; credit rating, availability of loan products, and loan restrictions (tightening all the time). Often times when there is a good rate there will also be a landslide of people trying to lock that rate in. Lenders have a limited bandwidth to accomodate the new activity and can put you “on hold” for 30-45-60 days and you could miss your opportunity to lock a rate. In addition, you should consider just how much affect .25-.5% is going to impact your monthly payment. Bottom line is talk to your lender to get more detailed information or call me (503-336-6736) and I would be happy to refer you to a couple to get more information.