No, not James Bond but the bond market. If you watch the bond market you will notice that interest rates for mortgages do the opposite of the bond market. When the market is up, interest rates on mortgages go down and vice versa. It is a good thing to know if you want to know when to buy and get a better rate on your mortgage.
Mortgage rates go up and down during the day, so a buyer wants to stay in close contact with their lender until they have locked in their interest rates. Rates cannot be locked until a purchase agreement has been accepted. Typically, the rates will hold for up to 60 days.
Here is my tip for buying right now in the Twin Cities. Consider the FHA ARM.. This is not the scary ARM of several years ago, but this is a sensible ARM for buyers today. The rate today is 3.6% and that rate holds for the first 5 years of the loan. It can go up or down 1% yearly after that for the 30 years of the loan. It caps at 5% over the start rate or 8.6% in this case. Many first time buyers will not be in their house over 5 years and this low starting rate allows them to buy so much more house.
I guess we can bring James Bond back into the discussion. The ARM is like one of the specialty items James had up his sleeve.
Comments(1)