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Mortgage Rates

Old 12-19-2008, 06:56 PM
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gf
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If anyone is thinking of refinancing, now is the time to do it, I just got 4.875%.


Mortgage rate hits 37-year low
The Wall Street Journal - Dec. 19, 2008
(Copyright (c) 2008, Dow Jones & Company, Inc.)

By Steve Kerch

The benchmark 30-year fixed-rate home mortgage in the U.S. fell to a national average of 5.17% this week, the lowest since Freddie Mac began its weekly rate survey in 1971.

With the Federal Reserve cutting its interest rates to near 0% and a continued decline in rates on the long-term Treasury notes that mortgages closely track, rates on other types of mortgages dropped again, though not as much as the 30-year.

"Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971," said Frank Nothaft, Freddie Mac chief economist. "The decline was supported by the Federal Reserve announcement on Dec. 16, when it cut the federal-funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant."

The 30-year mortgage fell for a seventh consecutive week, from 5.47% a week ago. A year ago the 30-year averaged 6.14%.

The 15-year fixed-rate mortgage averaged 4.92%, down from last week when it averaged 5.20%. A year ago the 15-year loan averaged 5.79%. The 15-year mortgage hasn't been lower since April 1, 2004, when it averaged 4.84%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.60%, down from last week when it averaged 5.82%. A year ago, the five-year ARM averaged 5.90%.

One-year Treasury-indexed ARMs averaged 4.94% this week, down from last week when it averaged 5.09%. At this time last year, the one-year ARM averaged 5.51%.

The sharp decline in rates has spurred a flood of mortgage refinance applications, the Mortgage Bankers Association said Wednesday.

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Old 12-19-2008, 07:20 PM
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"I just got 4.875%. "

Where?
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Old 12-19-2008, 07:37 PM
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RI Builder - 12/19/2008 10:20 PM

Where?

Countrywide quoted it and my local bank matched it. I'm in Essex County, MA.
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Old 12-19-2008, 07:41 PM
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I have some friends that are bond traders. All have been doing so for over 20 years. They seem to think that the rates will be very close to 4.25% come January. And maybe lower than that is the coming months. I'm personally waiting for 4.00%. But may jump on the first 4.25% I see.
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Old 12-19-2008, 07:59 PM
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That would be sweet.

Get your pre-approval in now.

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Old 12-19-2008, 08:02 PM
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Isn't this how we got into this mess?
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Old 12-19-2008, 08:24 PM
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littletunny - 12/19/2008 11:02 PM

Isn't this how we got into this mess?

No, sub-prime, interest only, 100% money got us in this!



The rate was 4.5% in GA on Thurs. 4.75% today
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Old 12-20-2008, 03:43 AM
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I refinanced in August 2003 and got 5.125. Went with an extra payment a year and will be finished in just over 7 years. At current rates (especially since those are with points) it doesn't make sense to refinance. If it gets down to low 4s I will look again.

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Old 12-20-2008, 07:36 AM
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4.75 with no points,
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Old 12-20-2008, 12:08 PM
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firefisher - 12/19/2008 7:41 PM

I have some friends that are bond traders. All have been doing so for over 20 years. They seem to think that the rates will be very close to 4.25% come January. And maybe lower than that is the coming months. I'm personally waiting for 4.00%. But may jump on the first 4.25% I see.
Ditto on this.
Just spoke to my Regions mortgage rep and was told the same.
Current loan balance is approx 90K at 5.25.
I am going to pay principal down $50K out of savings and modify the remainder or refinance
40K for 15 years. I hope to get 4% apr with this term.
I look at it as earning 115K over then next 15 years since this is what the finance charges will run me.

Actually, I am strongly considering paying entire note off. I have more than enough in savings to do this.

Thoughts?

I am open to any opinions on this plan.........
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Old 12-20-2008, 12:13 PM
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My HELOC last month was 3.75. I can hardly wait to see what it will be NEXT month.
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Old 12-20-2008, 12:20 PM
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Ray Zor - 12/20/2008 3:08 PM40K for 15 years. I hope to get 4% apr with this term.
I look at it as earning 115K over then next 15 years since this is what the finance charges will run me.

Actually, I am strongly considering paying entire note off. I have more than enough in savings to do this.

Thoughts?

I am open to any opinions on this plan.........
That depends on how confident you are in the stock market and how confident you are in investing. Personally I would invest the 40K rather than paying off the entire note - once the market hits bottom (if it hasn't already) then you should be able to get a larger return then you'd save in the interest payments.
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Old 12-20-2008, 12:27 PM
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LittleMRS,
That is exactly what I would have done 2 years ago. Not now.
what would be your main investment to get a fair return?
I am not touching my 401k, mutuals or stocks even though they are tanking. Hopefully I am buying volumes that hope will bounce back with a decent return.

As much as I hate to admit it (and I don't want to start an Obama bashing), I have very little confidence in this country's financial future or what may happen to our $$ to thoseof us who have a substantial $$ nest-egg.
I do have some time on my side though. Not going to retire anytime soon. within 15 years.
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Old 12-20-2008, 01:34 PM
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Ray Zor - 12/20/2008 2:27 PM

LittleMRS,
That is exactly what I would have done 2 years ago. Not now.
what would be your main investment to get a fair return?
I am not touching my 401k, mutuals or stocks even though they are tanking. Hopefully I am buying volumes that hope will bounce back with a decent return.

As much as I hate to admit it (and I don't want to start an Obama bashing), I have very little confidence in this country's financial future or what may happen to our $$ to thoseof us who have a substantial $$ nest-egg.
I do have some time on my side though. Not going to retire anytime soon. within 15 years.
Kind of in the same situation myself for the last several years. Now I am looking for a new house to buy while keeping the old one, so that changes it up a little, but if I were in your position again, I might be tempted to pay off 50k, refi for 15 yrs at 4.25 or so and keep the rest of your cash in hi-yield savings and/or short term CD's in case the sky starts falling. Your 15 year note will be pennies on the dollar compared to what you were paying before and if you want, you can pay double notes. That way, you can "play it as it unfolds". Also, at 4.25 or so, it's like free money anyway! I bet we see higher inflation rates than that in the next few years.
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Old 12-20-2008, 02:21 PM
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Ray Zor - to clarify, I'd be waiting until Spring to invest that money anyway. But if you pay off the mtg then you leave yourself without the option of investing. Given the low interest rate, it makes more financial sense to keep the debt. Exactly as Back In Black has said. If you hang onto the cash and find that you don't want to invest you always have the option of early payoff on the note.
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Old 12-20-2008, 02:36 PM
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rockhall it will be 3.25
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Old 12-20-2008, 07:35 PM
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LittleMrs - 12/20/2008 2:21 PM

Ray Zor - to clarify, I'd be waiting until Spring to invest that money anyway. But if you pay off the mtg then you leave yourself without the option of investing. Given the low interest rate, it makes more financial sense to keep the debt. Exactly as Back In Black has said. If you hang onto the cash and find that you don't want to invest you always have the option of early payoff on the note.
Point well taken. Thanks.
My wife's advice as well. Seems that for now we'll pay down our mortgage and refin when rates hit 4-4.25 @ 15yr.
This will be playing it safer than paying off entire mortgage in the event we run across a deal.
Oddly enough, tonight I just spoke to the landlord who owns the property next door to me (2 story duplex, rental).
He has gotten very aggressive on asking price.
We may working out a deal on it very soon and I would need a bit of cash to pay down. If I can get it at the right price, it will be slight pos cashflow as it stays rented constantly.

Thanks again for the opinions...........
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Old 12-20-2008, 08:01 PM
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I got to wait until April before I can refi.
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Old 12-21-2008, 11:44 AM
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Ray Zor - 12/20/2008 12:08 PM
[...]
Actually, I am strongly considering paying entire note off. I have more than enough in savings to do this.

Thoughts?

I am open to any opinions on this plan.........
Suggest you pay it off.

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Old 01-29-2009, 10:50 AM
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Just spoke with credit union. They are offering 7 year loan @ 4.99 APR. This sounds pretty good.
ANyone else seen these types of promos or better???
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