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Eileen Said:

Why are 30 year fixed mortgage rates increasing so much over the past month?

We Answered:

I just asked the same question. I am so frustrated with my house still for sale here in jersey, watching the rate climb, yet the banks rates r dropping. Yeah, that'll help the economy!(at least my portion of it!)NOT

Joel Said:

Now that the 'Fed' lowered rates 3/4 of a point on Tuesday; how does that effect 30-year-fixed mortgage rates?

We Answered:

Fixed mortgage rates are just that, fixed. So it will not change your rates. The only way to get around this would be to re-finance.

Andre Said:

How are 30 year fixed mortgage rates calculated?

We Answered:

The Federal Reserve and the bond market play a big part in how the economy works and how interest rates are determined. Many numbers and indices go in to the caluculations and many things affect the rate like Economic indicators, Job stability, bond rates, treasury bills, the stock market, etc. just to name a few, it is a complex calculation. Banks then sell their money based on what the buyers on Wall Street will purchase mortgage backed securities at.

I do not think there is any one place that can tell you all of this but you could try and look on the internet and the information that you ascertain will only be good for that moment in time as it is an ever flucuation calculation. The bottom line is the rates are what they are on the day they are issued, the are in a constant state of flux with some times being more volatile than others. The movement of the rates helps control the economy by speeding it up or slowing it down. The mortgage industry is in a huge state of turmoil right now with all the information in the news, etc. One thing you can always count on is that rates might go up and rates might go down. Locking into an interest rate is a risk, rates might go down, floating an interest rate is a risk, rates might go up. You never know.

Ramona Said:

can i get a lower 30 year fixed mortgage rate than i already have which is 6%?

We Answered:

Most lenders have a streamlined refinance procedure. You might communicate with your lender to see if they have a stream lined procedure. If not you would have to apply through a local mortgage broker or lender.

This mortgage broker/banker would obtain a credit report and see if this change is possible based on your credit score, debt to income ratios and overall credit.

You would need to be educated about what you are doing. You would want to see if this make financial sense for you and your current financial situation. Because your buddy down the street refinanced does not mean that you should do the same.

You may get a 30 year fixed refinance mortgage loan at the interest rate you are qualified for.

I hope this has been of some benefit to you, good luck.



"FIGHT ON"

Willard Said:

30 year fixed rate mortgage vs 15 year fixed rate?

We Answered:

With mortgage rates hovering around 4.35% for a 30yr mortgage, and 3.75% for a 15 year fixed, the rate does vary. However, there are vast differences in monthly costs, and overal costs when comparing the two. For example:

$300,000 mortgage, not including property taxes and mortgage insurance would cost the following.

30 yr mortgage at 4.35% would be $1493.44 and cost a total of $537,636 over 30 years.
15 yr mortgage at 3.75% would be $2181.67 and cost a total of $392,700 ove 15 years.

A 15 year mortgage would cost 50% more in this example monthly. Here is a financial trick.

If you make 1/2 of your mortgage payment every 2 weeks, you will end up making an extra monthly payment every year, which goes to principle. This will reduce your 30yr mortgage to a 25 year mortgage, saving you 5 years of mortgage payments, and give you $65,000 in savings, without doing much extra. This will allow you to have a lower monthly payment, while still paying off the mortgage early.

Daniel Klein is the CEO of InterCapital Group, a real estate, finance and consulting firm which helps clients better understand financial concepts, and real estate. 949-439-7808

Leo Said:

Why are 30 year fixed mortgage rates going up when the Fed announced a half percentage cut in interest rates?

We Answered:

Because the fed DOES NOT control 30 year rates.

The investors that buy these mortgage backed securities actually control the interest rates.

Here's what happens.

1. The Fed lowers rates.
2. The dollar tanks.
3. Inflation (I.E. Gold) rallies big time.
4. The investors demand a higher interest rates for destroying the dollar.
5. The public is confused because they don't understand the relationship between a weak dollar and rising interest rates.

Hope this helps.

Terry S.

http://www.Welcome2Arizona.com