Mortgage interest rates go up?

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Fixed interest rate to 30% now to 6.25% or more than 6%. In recent weeks it was below 6%. It was like 5.75%. If interest rates continue to increase and new t normal? My broker to say that I shuld make an offer and said in a castle Satz.Er later in the risk of inflation and as a result of this interest rate and higher. If the interest is more than what the cost has been months? I intend to leave the apartment on May 8 the possible end of a new house, I would now like locking up? Can I block out the amount but now May? Is financial disadvanage to do? What is the height really block? IN GFE, it has it, the compensation paid to brokers YSP PAID $ 3633.00 Mediation 1.5. ? Is this something I have to pay from my pocket, or I have nothing to do with the amount of the tax was also Laon 250K.Er said: One of the stated income loans that you do little or no all because of your credit loan Score.Angegebene but have a rate of BESR?

  1. Reply
    April 29, 2011 at 10:35 pm

    You might as well lock in because there may not be stated income loans in a few months. The YSP is NOT something you pay. That is what the lender pays the broker to give them your loan.

    Why do you need a stated income loan? Stated income loans are always at a higher interest rate. If you can prove your income, you should.

  2. Reply
    April 29, 2011 at 10:37 pm


    A good broker can submit your loan and lock an interest rate before you even pick out a house if you are looking to buy in 60 – 90 days.

    The interest rates won’t go up like crazy, but anything under 6% is pretty much unheard of anymore. Last month I was able to get 5.5% and lower rates, now it’s impossible.

    90 days is the longest rate lock you can do.

    Locking a rate means you “lock” in that day’s interest rate that the mortgage company offerred that day. Every day mortgage companies change their interest rates either increaseing or decreaseing. By locking a rate you are guaranteed that rate for a set period of days *30, 60, or 90 days* wether rates go up or down.

    LOL tell the broker to get a life. $ 3,633 Yield Spread is YSP, which means you qualify for a lower interest rate and he is charging you a higher interest rate to make money off of your loan. This fee is NOT paid by you, but you qualify for a better rate, and this broker is making money by charging you a higher rate.

    No income stated loans need a 680 plus score, 700 plus get better rates and you can get 100% financing. These are conventional loans. You need a 2 year work history.

    I would shop around if I were you ….. seems this mortgage company is trying to over charge you.

    Here’s an article I found interesting, you may too::::::

    The Fed and You: Don’t Wait to Refinance
    Why Mortgage Rates May Not Go Lower
    January 30, 2008 4:24 p.m.

    What does the Fed’s move mean for your money?

    Simple: If you were planning to refinance your mortgage but you hadn’t gotten around to it, do it now.

    See a mortgage broker this afternoon or tomorrow morning. Call in sick if you have to. Don’t wait.

    Thirty-year fixed rate loan rates have been on the floor recently, but the response to the Fed’s move suggests that may not last.

    The yield on 30-year Treasurys rose nearly a tenth of a percentage point this afternoon to 4.42%.

    (If you’re wondering why long-term rates would rise as the Fed is cutting short-term rates — the two do not move together, and in fact often move in opposite directions. This is because long-term yields are priced off long-term growth and inflation expectations. If the Fed steps in to boost short-term liquidity, by cutting Fed Funds, the market may fear that that will add to inflationary pressures down the road.)

    On its own, today’s move in Treasurys isn’t huge. But over the past few days the rates have risen noticeably, from a low of just 4.10% late last week. The yield on the 10 year has risen also risen, from a low of 3.28% to 3.71%.

    Long-term mortgage rates, ultimately, are priced off of long-term government bonds. If those yields continue to rise, mortgage rates will follow suit.

    And there’s plenty of reason to think this might happen.

    The Fed has shown it is more worried about a near-term slump, and the outside risk of falling prices, than it is about long-term inflation. It was the supposed risk of a serious crash, and maybe even falling prices, that had driven yields on government bonds so low.

    The Fed has now slashed its fed-funds rate target to 3% from 4.25% in 10 days. That’s a 30% cut in short-term borrowing costs.

    It’s hard to see how they can pump this amount of liquidity into the system without adding to inflationary pressures that are already building.

    Food and energy prices are being driven much higher by the massive shifts in population and industry in Asia, over which the Fed has no control. That’s why food and beverage inflation is now running at 4.8% a year, twice the rate of the first part of this decade and the highest level since 1990.

    Readers need no reminding about energy inflation, which has averaged nearly 7% a year for five years now.

  3. Reply
    Tony D
    April 29, 2011 at 11:15 pm

    Wow, you cover a lot of ground! Yes, stated income with best rates is possible if your FICO scores are high. Broker YSP is the money your loan officer is getting paid over and above the fees shown on the GFE, not out of your pocket but the lender’s. Locking in through May is a long-term lock and will cost you more. But if rates keep going up, may be worth it. Always the gamble a buyer has to make. And yes, rates have gone up that much in the last couple weeks. Happy to answer more if you need it,

  4. Reply
    Sean L
    April 29, 2011 at 11:23 pm

    There are a lot of Mortgage guys throwing in their 2 cents here…. including myself, some of it is good information, some of it isn’t….

    The fact is, none of us has a crystal ball and noone can tell you, for certain, what the rates are going to do in the coming weeks, months, years etc….. If we could, we would all be very rich and noone would be trolling for business on Yahoo! Answers…..

    A good rule of thumb is that if the stock market is performing well, then mortgage rates are usually going up, if the stock market is doing poorly, rates should come down. Mortgage rates are actually determined by the performance of Mortgage Bonds/ Mortgage Backed Securities, but keeping an eye on the market can give you a basic idea of what is going on.

    Is it possible that rates have increased almost a full % in the past couple of weeks? Absolutely. Is it possible that rates will continue to climb? Absolutely But isn’t there a possibility that the rates could also come down? Absolutely….. can you see a pattern here?

    There’s no sense in locking in a rate if you haven’t found a house you like yet, that could take months…. and a lot can change in that time. Find a home you like and then see if you can secure terms for a loan that are agreeable to you. At the end of the day, .25% + or – isn’t really going to mean much to you if you can afford the payment and are in your own home.

    Regarding the YSP….. Everyone needs to make money…. it’s why we work, it’s how we feed our families. Yes, a YSP is paid by the bank in return for you taking a higher than “par” rate. It is not something that the borrower pays and you will not be responsible for it, out of pocket or otherwise. It is a fee that the Investor pays to the broker. I, personally, think that 1.5% is reasonable. On the GFE, is he also charging Origination or Discount fees? if so, then that could possibly be a red flag that he is charging more than he should and those fees WOULD be a direct cost to you.

    Stated income loans will always have a higher rate than a full documentation loan regardless of your credit score. There was a “Mortgage Express” product available that would waive income documentation if your credit is good enough but it has been discontinued for a little over a month now. If there is any way for you to go full doc, you should and your rate will reflect it. There is also a rate difference between a Stated Income/Stated Asset loan (SISA) or a Stated Income/Verified Asset loan (SIVA)…. you will get a better rate by going SIVA, as long as you can show at least 3-6 months worth of reserves in a retirement/savings account.

    I hope this helps

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