Comments on: $750B From Federal Reserve = Mortgage Rates Dropping To Historic Lows Again?

By: Eric

Eric — Thu, 14 May 2009 22:14:47 +0000

I’m purchasing my first home and will be utilizing the 8K New HomeBuyers Credit….Just locked in my rate with USAA Federal Savings Bank at 4.875% and .125 points. No Origination Fee. I know in previous posts readers have said that Navy Federal Credit Union is the lowest they’ve been able to find, but Navy Federal Credit Union has a 1% origination fee, which you can waive for an additional .25% added to your interest rate. I’ve been following a lot of lenders recently, and USAA was by far the lowest. Happy Hunting other Home Buyers!

By: Mark

Mark — Mon, 23 Mar 2009 18:46:00 +0000

Dean, that’s a good point we should all keep in mind. There was a bubble possibly caused or helped by lack of good regulation and right now the government is trying to soften the landing of the bubble with money policy. At some point, they have to allow regulation and not continue to pump money at which point house prices will have to come down/level off/not raise so much.

It makes the long term investment perspective uncertain.

By: Robert

Robert — Mon, 23 Mar 2009 02:42:33 +0000

it would be a good idea to refinance to 4.25 if you can.
But i wouldn’t convert it to a 30 year mortgage. you would
end up paying more interest than principal, especially were you are only planing on living there another 4-5 years.

you could actually ask to see with the lower interest
what would the payment be on a 10 year instead of 15.
you might be able to pay the mortgage down even faster.

By: VicfromATL

VicfromATL — Fri, 20 Mar 2009 20:21:32 +0000

Hi Jonathan..and other readers,

I currently have 15 yr for 5.125% for last 3 yrs. My broker told me that it would make sense for me to refinance @ 4.25 -15 yr..I’m planning to stay in the same house for another 4-5 yrs.
I’m also looking at refinacing to 30 yr if the rate is around 4.5. But I like the idea of paying more principal and lower rate with 15 yr.

But I want to be a better investor instead of just being emotional.

Can you please advise? or through some scenarios.

Thanks,

Vic

By: Bryan

Bryan — Fri, 20 Mar 2009 18:41:43 +0000

Was going to lock 2 days ago at 5%. Waited and got 4.75% yesterday. Very happy about this!

By: Tom Lutzenberger

Tom Lutzenberger — Fri, 20 Mar 2009 05:10:17 +0000

Close but not low enough yet. I’d like to see it get below 4.5% before I think refi. Very comfortably at 5.375% myself.

By: dean

dean — Fri, 20 Mar 2009 03:53:17 +0000

great, that means housing prices are inflated at artificially high prices due to temporary government gimmicks.

By: Pat

Pat — Fri, 20 Mar 2009 03:22:57 +0000

Finally the rates are dropping! This came at a really good time too. Here’s to hoping they fall even more! I think I’m going to refianance in about a month or two. What do you guys think, do it now before the rates go up again or wait for them to fall even further?

By: Hogan

Hogan — Fri, 20 Mar 2009 03:12:40 +0000

The real question is why is your mortgage broker still in business? They provide no real value, they work for themselves and not you, so why use them? The housing culture is changing in California, you may have needed a broker to buy some overly exotic complex product in the past to get into an unsustainable inflated house but now you can only get a plain mortgage.

By: ChrisMR

ChrisMR — Thu, 19 Mar 2009 21:37:30 +0000

I did a refi 2 months ago at 5%… thought that was doing great.
Maybe I should have held out. Hindsight is 20/20.
Cut the 25 yrs I had left on a 30 yr down to 20 yr, with a slightly lower payment.
Still happy with what I got… although I guess I could have been happier.

By: Greg Phillips

Greg Phillips — Thu, 19 Mar 2009 18:42:28 +0000

The rates should continue to decline as the money is distributed. Today my rates decreased .25% to .50% on most products.

By: NY GUY

NY GUY — Thu, 19 Mar 2009 14:06:50 +0000

@ SCOTT

You saved $2000 on what? Closing costs, interest on the life of the mortgage? Sorry not a home-onwer so maybe I’m missing your statement.

Also, what is the home value you are purchasing, and how much have you put down? What area of the country are you in?

I’m curious as I would be in the market to be a homebuyer in a few years and curious about others experiences

In NY it is nearly impossible to purchase a home on a median income and one income household. The mortgage might be reasonable but you’ll be paying insane amounts of interest on the yearly taxes if you roll them into your mortgage payment. Than throw in the cost of living here and cable,phone,ultilities and groceries and you’re left having no life and sitting home all the time and paying bills.

Buying a home in NY is unreasonable for the average 25-35 year old, and only for the high income earners. Im debating if homeownership is the quality of life I need right now.

By: Scott

Scott — Thu, 19 Mar 2009 13:31:07 +0000

We’re buying our first house right now so this hit at a great time. All of a sudden all of the banks starting calling yesterday saying “the rates dropped!” but in the end, as expected, Wells Fargo beat them all with the lowest rate, lowest points, and lowest fees. Basically by locking in yesterday rather than the day before we saved $2000. Ridiculous.

By: Captain Betty

Captain Betty — Thu, 19 Mar 2009 13:22:18 +0000

yep… the fed’s printing money like it’s going out of style: http://www.iht.com/articles/20.....ss/fed.php