Mortgage Rates

[RockMonkey]

So, who's been watching the mortgage rates lately? We're on a 30 year fixed at 6.75%. The housing slump has really been driving rates down. Right now my credit union has 30 year fixed at 5.875% and 15 year fixed at 5.5%. If you've been paying attention, what are your feelings? How long will they continue to fall? I think they're going to keep going down for at least the next 6 months. We're going to try to refinance when the rates are at rock bottom. If they go low enough we'll do a 15 year. With the rates going down as much as they are it's conceivable that we could go from 30 to 15 years and keep the same payment.

 

[mbryson]

So, who's been watching the mortgage rates lately? We're on a 30 year fixed at 6.75%. The housing slump has really been driving rates down. Right now my credit union has 30 year fixed at 5.875% and 15 year fixed at 5.5%. If you've been paying attention, what are your feelings? How long will they continue to fall? I think they're going to keep going down for at least the next 6 months. We're going to try to refinance when the rates are at rock bottom. If they go low enough we'll do a 15 year. With the rates going down as much as they are it's conceivable that we could go from 30 to 15 years and keep the same payment.

5.8.....that ain't bad at all. I'm semi-tempted to refi already (just did it in July when the rates were up a little) We're at 6.5 or 6.625% or something, though. I wish I could handle the 15 year. That'd be SWEET to get out from under this pig....

 

[Greg]

I've been watching rates for the last few months as the RE market went downhill. We're paying 6% which isn't bad, but 5.5% or less over 30 yrs would make things better. I've considered a 15 yr loan, we're in a really good position with our home & it would be very possible to pay on 15 yr loan if rates for them make it under 5.5%.

I agree with you, I think rates will fall for another 6 months minimum. I think the housing market is in a bad funk & the recent hiccups scared a lot of people. Nobody wants to spend & I doubt they'll quickly forget how bad it has been recently.

 

[kowe69]

haven't watched them closely but I haven't seen them even close to what I financed at 3 years ago at 5.45% fixed for a 30 years. If the housing market continues to go the way it has been it's possible the interest will return to what it was three years ago.

 

[wally]

I would like to refi but I have a lower rate then what it currently is at.

 

[RockMonkey]

Bankrate.com shows 15 year fixed rates in Salt Lake as low as 4.75% with no points today. That loan has big closing costs though. You can get 5.25% with $999 closing costs, or if you really don't want to pay closing costs you can get a 5.375% 15 year fixed rate for only $39 in fees.

If you still feel like you need to be in it for 30 years you can get 5.375% fixed, but over 4k in closing costs. 5.625% with $999 closing costs.

 

[skybob]

I'm at 30 years @ 6.25 and I bought right as the rates where starting to drop, but the housing market hadn't yet. I REALLY wish I would have waited. I prob could have found something with a 2 car garage instead of my tiny ass garage. Seems like the everything under 150K isn't loosing as much value though. That's good for me

 

[RockMonkey]

I've been watching rates for the last few months as the RE market went downhill. We're paying 6% which isn't bad, but 5.5% or less over 30 yrs would make things better. I've considered a 15 yr loan, we're in a really good position with our home & it would be very possible to pay on 15 yr loan if rates for them make it under 5.5%.

I agree with you, I think rates will fall for another 6 months minimum. I think the housing market is in a bad funk & the recent hiccups scared a lot of people. Nobody wants to spend & I doubt they'll quickly forget how bad it has been recently.

15 year rates are well below 5.5% right now.

 

[RockMonkey]

I'm at 30 years @ 6.25 and I bought right as the rates where starting to drop, but the housing market hadn't yet. I REALLY wish I would have waited. I prob could have found something with a 2 car garage instead of my tiny ass garage. Seems like the everything under 150K isn't loosing as much value though. That's good for me

Utah has been significantly under valued compared to the rest of the country for years. We have not seen homes (on average) decline in value. In Utah we have merely seen slower growth. Many of us stand to benefit from the housing slump by capitalizing on the lower rates.

 

[RockMonkey]

Holy crap, it doesn't even pay to wait...

I'm looking at some of the loans with incredibly low origination fees, and the time it takes to recoup the costs is just silly. I can refinance to another 30 year fixed at 5.875% for $350 in fees. My current 30 year is at 6.75, so this will drop my payment $182 per month. This recoups the up-front cost of the loan in less than 2 months. If the rates are lower in 3 months I can get into the 15 year loan I really want, and I've already paid for my original refinance in monthly savings. Also, if the rates skyrocket next week I've gotten in at the rock bottom of the market.

Check out this cool refinance calculator:
http://mortgages.interest.com/content/calculators/recoup.asp
This really got me thinking about the very low closing cost (but slightly higher interest rate) mortgages. They are a really nice way to mitigate the risks of waiting for the rock bottom rates. Save money while you wait for the perfect rate!

 

[Bart]

The rule I've heard is if you drop a whole interest point, then it's worth refinancing. When it was real low last time (about 2 years ago) we locked in @ 5.25. Not sure how much it will drop now but heading into a recession will definitely play with the rates. I also pay an extra $100 a month to principal so that drops my pay off time by a fourth.

 

[BCGPER]

What is this mortgage thing you speak of??????




See, there are benefits to getting older.

 

[Cody]

What is this mortgage thing you speak of??????




See, there are benefits to getting older.

I don't now that I would ever want to own a home outright. There are tax advantages to having a mortgage.

 

[BroncoMama]

What is this mortgage thing you speak of??????




See, there are benefits to getting older.

You are the lucky one! I hate our mortgage even if it is a huge tax write off. If we didn't have the huge ass payment, we wouldn't have to work so much and therefore wouldn't need as big of a tax break! We are currently in the process of refinancing, but we're self employed which means we go on stated income and are praying we can get our interest rate below 7.5%. It's these times when I think it might not be that bad giving up our freedom and working for someone else. :sick:

 

[RockMonkey]

I don't now that I would ever want to own a home outright. There are tax advantages to having a mortgage.

Wha??? Yea, mortgage interest is tax-deductable, but the amount you get back from that deduction is not even close to the amount you're paying in interest.

That's like you paying me 100 dollars every month in exchange for me paying you 100 dollars at the end of the year. You're still paying 1100 bucks.

I can't wait for the day my house is paid off. At this point I should be able to have the house paid for by the time my kids are ready to go to college.

 

[Bart]

I don't now that I would ever want to own a home outright. There are tax advantages to having a mortgage.

So many ways to go with this, I don't even know where to start. Cody, you surprise me.

 

[Cody]

ya, my head wasn't on completely straight this morning.

I was thinking back to a discussion I had about what to do if you won a million dollars and the point I was trying to prove was that the retrun on the money would be much greater than the interest you pay on your mortgage if you were to invest it.....and part of my point had to do with the tax write off of interest.....so it would be, in that theoretical situation, better to invest than to pay off your mortgage. obviously irrelevant here.

anyway. ya, it's good to pay off your mortgage in most situations.

 

[MR.CJ-7]

I've just started getting calls from my lender who has my 2nd (@6.0%) They are trying to get me to refi my first with them, they are offering 5.8, but that is what I already have.

I'm waiting to see where this rate slump goes. If I can get down low enough I'll combo both the first and the second together. I think I'll wait for a low 5's rate on a 30 or something in the 4's on a 15.

I would love to luck out like my sister in law who has a 30yr fixed at 4.25%.

 

[mbryson]

I've just started getting calls from my lender who has my 2nd (@6.0%) They are trying to get me to refi my first with them, they are offering 5.8, but that is what I already have.

I'm waiting to see where this rate slump goes. If I can get down low enough I'll combo both the first and the second together. I think I'll wait for a low 5's rate on a 30 or something in the 4's on a 15.

I would love to luck out like my sister in law who has a 30yr fixed at 4.25%.

What kind of closing costs?

 

[utahxjer]

We have to refinance this month, looking to get a much BETTER rate this time around.