mortgage interest rates?

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We intend to buy a house in this down market. we found a couple of nice house and we are finalizing one. where we took our rate of pre-approval letter was low – 5.3% and 6.3% today. we want to take a mortgage of 15 years. Can someone please tell me what happens to interest rates since the last rate cut. (We have an excellent credit history and good income if the hope of getting a better price than posted one).

  1. Reply
    April 30, 2011 at 1:15 am

    No one knows – I wouldn’t count on the fed rate cut affecting mortgage rates very much.

  2. Reply
    Ford T
    April 30, 2011 at 2:00 am

    Take the 30 yr loan. Try to negotiate with other lenders to get a 30yr loan at the same interest of the 15 yr loan. Then your monthly payment will be cut by half. That will make it easier to pay month by month. Also take into account that home prices are likely to drop a little more. You might consider waiting a little.

  3. Reply
    Christopher B
    April 30, 2011 at 2:59 am

    Not much is going to happen after the latest rate cut. Things don’t move that quickly – and the trickle down effect is lower then the cut in the rates.

    Expect to see a steady increase in interest rates as credit continues to tighten initially.

  4. Reply
    April 30, 2011 at 3:41 am

    Interest shouldn’t go much lower.
    Don’t listen to Ford T. He’s clearly not familiar with compound interest.
    If you double your mortgage term you don’t simply cut your monthly payments in half, it isn’t even close to cutting that much off your monthly payment AND your interest payment grows exponentially. Assuming you’re qualified to purchase your house, a 15 year term is always a better option. You’ll save tens of thousands of dollars.

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