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Mortgage Rates Article
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Understanding Mortgage Interest Rates
from:Unlike renting, buying a home is a great investment; it is like having money in the bank. Renting, on the other hand is like throwing money away, which is why many people prefer to own their own homes. Mortgage interest rates and other costs can be a deciding factor for people deciding to buy a new home or refinancing their present home. Often empty nesters decide it is more beneficial to sell their family home and buy a smaller home if the mortgage interest rates are affordable.
Ultimately mortgage rates reflect the results of the business done on Wall Street. Investors buy bundles of mortgages in the form of securities. The federal funds rate influences on the mortgage interest rates that banks have to charge borrowers, so the banks can recoup their money and make a profit. As the economy changes it affects the prime rate on adjustable rates mortgages (ARM), car loans, credit card credit lines, and mortgage interest rates of all kinds. Our whole economy is based on what happens on Wall Street, and our interest rates reflect that.
The better your credit history the better the mortgage interest rates you can qualify for. If your credit is not perfect you may still be able to get a mortgage loan, and you may also be able to buy points to get lower interest rates offered to you. If your credit history is less than perfect, you may be required to pay on the mortgage note for a certain number of years before you can make extra payments to lower the principal amount of your loan; however, if your bank or lending institution allows you to pay your note off early, it is a good thing to do because lowering the principal generally lowers mortgage interest rates.
If your lending institution will allow you to refinance your existing loan to lower your mortgage interest rates, it is a good thing to talk to a financial advisor about the mortgage interest rates that you would qualify for. The interest rates vary; the fixed rate stays the same for the duration of the loan contract, and an ARM changes periodically. Your interest rate may go up or down every 6 months to a year, however your mortgage loan is set up.
You may get lower mortgage interest rates on longer loans, but slightly higher interest rates on shorter loans will save you many thousands of dollars over the life of your loan. If you compare the interest rates on a 30 year note and a 15 year note, you will see that the 15 year not will save you a lot, even though your monthly payments are more than with a 30 year note.
Mortgage Rates Specific links
Mortgage Rates News
Mortgage rates set new record lows, might hold steady next week - Los Angeles Times
 Bakersfield Now | Mortgage rates set new record lows, might hold steady next week Los Angeles Times Mortgage rates fell for the 10th time in 11 weeks, setting fresh record lows, Freddie Mac reported Thursday. ... 30-Year Mortgage Rate: 4.32% U.S. 30-Year Mortgage Rate Declines to Record 4.32% Mortgage Rates Hit Record Low: Freddie Mac |
Mortgage Rates Don't Affect Loan Applications as much as you'd Think - FreeRateUpdate.com
 FreeRateUpdate.com | Mortgage Rates Don't Affect Loan Applications as much as you'd Think FreeRateUpdate.com September 2, 2010 (FreeRateUpdate.com) – Mortgage rates are back to their all-time record low of 4.00 percent with a standard 0.7 to 1.0 point origination ... Home Mortgage Refinance Loan Rates – 30 Year Fixed Mortgage Rates at Lowest ... Home loan demand rises as rates hit new low Mortgage applications rise 2.7 pct on low rates |
Analysis: Mortgage policy guessing game for investors - Reuters
 Reuters India | Analysis: Mortgage policy guessing game for investors Reuters Bank mortgage rates have not kept pace with the drop in other interest rates, and many lenders have narrowed the field of who qualifies for a loan. ... Mortgages Lose Ground in Best Month for Bonds Since 2008: Credit Markets My Four Step Plan to Save the Economy Mortgage Bonds Lose Ground With Home Refi Boom: Credit Market |
Low mortgage rates go lower. Better days ahead for housing market? - Christian Science Monitor
 Central Florida News 13 | Low mortgage rates go lower. Better days ahead for housing market? Christian Science Monitor Low mortgage rates fell still more this week – to the lowest level ever in four decades of tracking. Also, the number of pending home sales posted a rise ... Pending Home Sales Rise as Mortgage Rates Fall Pending home sales rise 5.2 percent in July July posts gain in pending home sales |
Mortgage rates drop to lowest in 4 decades - Newsday (subscription)
Mortgage rates drop to lowest in 4 decades Newsday (subscription) For the 10th time in 11 weeks mortgage rates fell Thursday, reaching the lowest level in four decades - a trend that's driving many Long Island homeowners ... |