If you're a home buyer or seller it is crucial you keep updated on what is happening to interest rates in this historic time. When I talk to friends and clients I suggest two sites to keep them updated.
The first site shows interest rates for 30 & 15 year fixed and 5/1 and 1 year Adjustable Rate Mortgages:
http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputYr.jsp
The second site is a commentary of what to regarding floating and locking of your interest rates.
http://www.stonegatemtg.com/DailyRateLockAdvisory
Remember your pre-approval should be free. Some lenders charge you $50 to as much as $350 for a pre-approval. When starting your search for a mortgage consultant you should start with a local mortgage planner. You will want to meet them in person and ask the following questions:
What are the Discount Points and Origination Fees? Each point is equal to 1% of the loan.
Do you offer loan locks? Interest rates fluctuate and change daily. Lenders typically charge zero to one point to lock a loan rate and points. Ask your lender:
•· Do you charge a fee to lock my interest rate?
•· Does the lock-in protect all the loan costs?
•· For how long will you lock this rate?
•· Will you give me the loan lock in writing?
The alternative is to pay the prevailing rate and points on the day your loan funds.
Jim Thomas
Private Real Estate Advisor
EASYstreet Realty
Indianapolis, IN
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