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Karen Said:

should i lock in my variable rate 2nd mortgage now to a fixed rate, or wait for interest rates to fall more?

We Answered:

I honestly don't see interest rates getting any lower.
Eventually they will start shooting up.
If you can get a 5% FIXED loan rate, I would do it now.

I read in Money Magazine that interest rates just on 1 year cd's could easily double by December.
Keep this in mind - and don't wait too long.
Remember, you will be paying penalties for paying off your old mortgage early.
It's not about what your monthly payment will be, its about what is right for your financial future.
If you are extending the length of your mortgage by too much - it could be a bad move.
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Marilyn Said:

Bay Area, CA 2nd Mortgage Rates?

We Answered:

2nd mortgage fixed interest rates are the same no matter what state you live in...the rates are based on the loan to value and your credit score, ranging between 8% (this is prime) and 14%.

Judith Said:

How long til it is revealed in mortgage rates?

We Answered:

the discount rates have nothing to do with the mortgage rates.

if the FED lowers the discount rate....it will stimulate the market to go up. When the market goes up....the bonds go down in Yield Spread. More investors buying stocks/mutual funds....leads to more consumer spending.

to make a long story short...if the FED lowers the rate...the mortgages WILL go up.

Melinda Said:

Anyone think mortgage rates will drop further or have they bottomed out?

We Answered:

The Fed is contemplating on cutting rates again -

http://biz.yahoo.com/ap/080110/bernanke.…

Michele Said:

Why are fixed mortgage rates and adjustable rates different?

We Answered:

The 30 year fixed will have the same interest rate (6.07%) for all thirty years of the mortgage. The 5/1 ARM will only have a fixed rate 5 years, and then will change (can go up) in the sixth year and every year after until thirty years. The first mortgage is riskier for the bank because they are guaranteeing the rate for all thirty years, so they charge you a higher rate of interest.

Beatrice Said:

Website with a chart showing 2nd mortgage rates? (and 1st?)?

We Answered:

usaa has the lowest 2nd mortgage rates that i know of. 2nd rates a lot different that 1st mortgage rates. all 2nd mortgage rates start at prime, (8.250)......companies go up from there...adding on .250, .500. 750...or anything in between there. that is the norm. so if you get a rate of a 8.250 on the 2nd, you are getting a great rate. also....please ask if there are any points on the 2nd laon...and if there is...leave it alone. NOW...USAA sometimes gives you below prime (8.250) if you are putting down a good amount of money and your credit is good.

i know thi stuff because i sell mortgage for a top 5 company. if you want me to run your situation, you can e-mail me at alex.nicolov@mortgagefamily.com and i would be more than happy to help you. no obligation what so ever.

good luck.