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Henry Said:

anyone have an eye on current mortgage rate trends?

We Answered:

6% is pretty good. You could get the lowest rate by putting some more money into it, but trying to get it down another 1/8 of point is not worth the effort.

Rates are going to stay the same for the next 6 months (move up or down a 1/8 point.) since the Federal Reserve has indicated that they are not going to change interest rates soon unless it gets data that differs from their expectations. Go ahead and lock it in.

To see the difference, I suggest you go to www.bankrate.com or www.mortgage101.com to see how much the 1/8 of a point will make a difference.

Just a bit of information, if you have your bank account at Wells Fargo, they could give you a discount on your rate. (maybe an 1/8 or a 1/4). You just have to ask about it.

Wanda Said:

Should I refinance my home mortgage if the current fixed rate is a full 1% less than my current fixed rate?

We Answered:

Conventional Wisdom says yes. It will boil down to the costs. If you can finance the refi costs into it, how long will it take to pay that portion off based on the savings? If the time is less than the time you plan to own your home than yea refi, if not then don't.

Ruth Said:

Will my current mortgage rate change if I move and use my current house as rental property? How much?

We Answered:

Your lender has to live up to the contract. Your rate can't change unless you refinance it as an investment.

Paula Said:

What is your current mortgage rate? Is 5.25% good/great/ok?

We Answered:

5.25 is good. Who know where the rates will go. I would just take it and not gamble on a lower rate.

Thelma Said:

What is current mortgage rate for a conventional mortgage with 20% down. Very good credit to excellent.?

We Answered:

Just got to Bankrate.com
very simple
But are you owner occupied or non owner?
What's very good to excellent in your mind?

Anthony Said:

Fed Reservse rate slashes and the current mortgage rates?

We Answered:

The fed reserve rate is the rate at which it (and other banks) lend money to other banks via "ovn't loans." Theoretically interest rates are supposed to fall for mortgages but as you've seen, this hasn't really been happening. The reason for this is that virtually NO ONE is loaning out $$ to potential homebuyers during this credit crunch. Basically, banks are afraid to loan money. They're losing $$ hand over fist right now on people who foreclose due to non payment so the rate they charge has to compensate somewhat for the risk they're taking. Until the "Risk" factor disappears, the rates will continue to be in the 5-7% range - possibly higher. When the FED basically backed Fannie Mae/Freddie Mac's mortgages, the "risk" was substantially lowered and the rates fell from about 6.5% to 5.5%, pretty drastic.

So, while the latest rate lowers the federal funds rate to effectively 0.00 or 0.25%, it will do nothing for the mortgage market until people believe the "risk" factor is lowered too.

I would expect to see mortgage rates hover between 4.5-5.5% for the next few months and see how foreclosures do. If they start to drop, then interest rates will drop along with it.