Mortgage Rates Newsletter - Market Analysis

Provided courtesy of: http://www.mortgagenewsdaily.com/reports/mortgage_rates/archive

Mortgage Rates Find Some Support
Thu, 21 Sep 2017 20:11:11 GMT - Mortgage rates have been higher almost exclusively for the past 2 weeks. Yesterday was no exception as the Federal Reserve released a rate hike forecast that was slightly more optimistic than markets were expecting. By yesterday afternoon, the average 30yr fixed mortgage rate was at its highest levels in over a month. The Fed news justified a defensive stance among prospective mortgage borrowers. When rates move initially higher following a Fed announcement, it's all too common to see that momentum continue in the following day. In today's case, we've actually seen a bit of support. Underlying bond markets were in slightly better shape vs yesterday for most of the day, thus allowing lenders to either keep mortgage rates unchanged or to bring them marginally lower. 4.0% remains the most prevalently
Mortgage Rates Highest in More Than a Month After Fed
Wed, 20 Sep 2017 21:28:23 GMT - Mortgage rates rose today following the announcement and--more importantly--the Fed's updated economic projections . The Fed holds 8 meetings a year. They release an official policy announcement after all of those. Four of the meetings are "special" and are followed not only by a policy announcement, but also by updated economic projections from Fed members. These projections include an important "dot plot" of the Fed's rate hike expectations. The so-called dots have been more important than the actual announcement on some occasions. While most of today's press coverage will focus on the fact that the Fed finally enacted its plan to shrink its balance sheet. That was widely expected, however. Investors weren't sure how the past few months of economic data and events would affect the rate hike
Rates Steady Near Recent Highs Ahead of Fed
Tue, 19 Sep 2017 21:32:57 GMT - Mortgage rates remained unchanged today, on average. This keeps them in line with their highest levels in more than a month, though admittedly, there hasn't been much upward movement since the sharpest leg of the spike ended last Wednesday. Conventional 30yr fixed rates in the "high 3's" remain available for top tier scenarios, but 4.0% is slightly more prevalent now. While there were several economic reports and seemingly important news stories today (both tend to have an effect on rates), bond markets marched to their own beat. Traders were generally getting in position for tomorrow's Fed Announcement. Two weeks ago, the order of the day had been to push rates lower heading into Hurricane Irma weekend. There's been a correction in play since then. From the long-term lows in early September
Frequently Asked Questions

Frequently Asked Questions

There are many different solutions available for various client profiles. Depending on what your employment type is, and how your credit looks, you may have different options available to you. For a profile analysis, you should contact I Want a Better Mortgage. From there, we can recommend some great options, tailored to your situation. Generally speaking, there are two types of mortgage terms. Open or closed. If you are unsure whether closed or open, fixed or variable is right for you. Read on, the info below will give you a better understanding. We are still just a phone call away in case you want to talk to a live mortgage professional about any of the options listed below.

Open vs. Closed

An open mortgage is 100% open for prepayment at any time throughout the term of the loan. This means that you have the option to repay any or all of the mortgage balance at any time without penalty. This type of mortgage may be important to you if you can foresee repaying your mortgage loan in the near term. For example, you may be planning to sell your home within the term of the mortgage and paying it out in full, or you may be expecting other money that will allow you to make large prepayments to mortgage loan. A closed mortgage has restrictions on how much of the principal you can repay without penalty within the term of the loan. Most closed mortgages will allow you to repay a certain portion of the principal amount every year without penalty. The amount you can prepay depends on the lending institution but usually ranges from 10% to 25% of the original principal amount per year. There may be restrictions on when these prepayments can occur and how many times per year you can make a prepayment. For example, you may be able to only make prepayments once throughout the year on the anniversary date of the mortgage or the prepayment may need to coincide with a payment date. Your mortgage professional will discuss these policies with you as each institutionšs policies can vary widely and it may be difficult to find a better mortgage.  iWantaBetterMortgage.Com is a great place to start.

Fixed Rate vs. Variable Rate

A fixed rate mortgage is where the interest rate is set at the time you get your mortgage loan and will not change for the entire term of the loan. For example, if you take out a 5-year term, fixed rate mortgage at 5.25%, you know that your rate is fixed at 5.25% for five years and will not change. This type of mortgage offers you security and peace of mind, as you know exactly what the interest rate and payments will be. You will generally pay a little higher interest rate for a fixed rate mortgage and the rate usually increases with the length of the term. A variable rate mortgage is a mortgage where the interest rate is tied to and floats with the bankšs prime rate. If the prime rate goes up, then your rate goes up. If the prime rate goes down, then your rate goes down. Variable rate mortgages usually offer the lowest available rate because you are taking the risk that rates may rise. There are many different options available for variable rate mortgages. Your mortgage professional will help you review all of your options to find the best mortgage available.

Mortgage Term

The term of the mortgage is the contractual life of your mortgage loan. The term represents the length of time that you and the financial institution are obligated to each other with respect to your mortgage. As you choose your mortgage, the term is one of the decisions you will need to make. The term of the mortgage is usually shorter than the actual life, or amortization of your mortgage. Once the term has expired, the mortgage is completely open for renegotiation. At that time, you have the right to find a new lender if you wish and your financial institution has the right to re-qualify you before renewing your mortgage. In practice, as long as your mortgage is current and all payments have been made as agreed, financial institutions will often automatically renew your mortgage, and not require that you re-qualify.

Payment Frequency

Most lenders allow several options for payment frequency (how often you make your mortgage payments). Most will allow you to make payments either weekly, bi-weekly (every two weeks), semi-monthly (twice a month) or monthly. Choosing which type of payment to make will be a matter of convenience, but there may be advantages to paying more frequently than monthly. When you increase the payment frequency, you reduce the principal faster, pay less interest and pay off the mortgage sooner. Contact us to discuss the options that will work best for you.

 

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