Mortgage Rate Update

By
Mortgage and Lending

Mortgage Rate Update


Rate Lock Duration

Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.

Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called 'short-pricing.' The lender basically knows the borrower doesn't have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.

For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you're much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.

Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 29th October, 2009:

 

Term

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

360

5.000%

5.131%

$5.37

5.250%

5.383%

$5.52

15-Yr. fixed

180

4.500%

4.723%

$7.65

4.875%

5.101%

$7.84

7-Yr. fixed ARM

360

4.250%

4.375%

$4.92

5.500%

5.635%

$5.68

5-Yr. fixed ARM

360

4.000%

4.124%

$4.77

5.375%

5.509%

$5.60

3-Yr. fixed ARM

360

4.375%

4.501%

$4.99

5.375%

5.509%

$5.60

5-Yr. Interest Only

360

4.125%

4.250%

$3.44

5.875%

6.013%

$4.90

FHA 30-year fixed

360

5.000%

5.131%

$5.37

5.250%

5.383%

$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

 

Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com

 

 

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.





© Copyright 2009. All About News, Inc.

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Rainmaker
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Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Rates still look very attractive!

Oct 29, 2009 08:48 AM #1
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Rainer
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Karl Peidl

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