I don't follow rates very closely, but as we may refinance our mortgage I wondered if any of you know what rates are doing? I'm thinking of a 15 year fixed rate at 6.5% - does that sound reasonable, and are rates stable? Thanks for any input!
Think rates have gone up a lot recently. What rate are you refinancing from?
Definitely have gone up over the past few years. I refinanced at the end of 2003 and got 3.875%. If I moved now, it would be almost double.
6.5% seems to be about the current rate. You can pre-pay some of the interest and bring it down I suppose.
That does not sound too bad. The longest fixed rate we can offer is 5.25%. The mortgage can be for 15 years, you will just have to choose another rate in 5 years time (at whatever the rates are at the time). Some features of the scheme include
* A five year FIXED interest rate of 5.25 % will apply.
* Lenders arrangement fee of Purchase £599 Remortgage £699
*There is a 5/4/3/2/1% early repayment penalty within fixed term.
* Partial repayment of 10% pa without penalty
Any questions, please feel free to ask - dashley@candourconsultancy.com
you are correct thinking of a 15 year fixed rate at 6.5% - it is sound reasonable.
you are correct thinking of a 15 year fixed rate at 6.5% - it is sound reasonable.
I know this is an old, revived thread but I came to a decision about a month ago to 'float' with the interest rates for at least another year or so.
It works out better IF the rates stay as they are or continue to drop. If I refinance, the rate will double but if I just sit and go with the LIBOR (London Interbank lending rate), the rate only goes up by about 1%. I'm only marking time in my house right now anyway so a year or two from now, I doubt I will be in it.
Still, I'm getting bombarded with 'urgent' requests to refinance, from my current lender and others that have access to the fact my adjustable rate mortgage is about to reset but having done my homework on it, I'm not panicked.
just refinanced the home last month and got a 5.5% 30 YEAR CONV fixed ( got the rate locked in when it dropped ) we where at 6 .58% VA.30 YEAR FIXED ,saved over $100 a month
Had a lot of problems closing the loan at that rate but because of my real estate experiance i was able to press ahead ( the problems are a thread all on its own you would get bored if we discussed them here) we went thou lending tree * buyer beware of them *.
also i only pay pi (prniciple and interest) as my ratio of loan to appraised value is under 80% . if you do this be very careful to set up your own escrow account with your bank .
the last morgage company had $2000 in the escrow account and by law they are only supposed to hold 3 months tax and 5 months insurance
they returned some if it at the end of the year but they had it for ever getting interest on MY money.
muliply it by the thousands of morgages thay hold and they make a lot of interest on your money ..
good luck pm me if you need more info
PS IMPORTANT ...... as per the recent forclosures be very suspicioius of ARMS ajustable rare morgages
the last morgage company had $2000 in the escrow account and by law they are only supposed to hold 3 months tax and 5 months insurance
they returned some if it at the end of the year but they had it for ever getting interest on MY money.
muliply it by the thousands of morgages thay hold and they make a lot of interest on your money ..
PS IMPORTANT ...... as per the recent forclosures be very suspicioius of ARMS ajustable rare morgages
Good point on the escrow. I will handle it myself in the future and keep my interest. I'm still paying PMI actually, even though I passed the point where I would need it by now but I haven't quite reached the point where it is automatically canceled. I haven't been bothered to get another appraisal although mathematically, it is probably worth it and something I should hand over the $300 or so for - I'd make it back in six months or less.
My ARM worked out for me, even though I ended up overstaying the duration I originally planned. If I could have got similar terms to that one now, I might have refinanced but the current ARM rates are about the same as 30 year fixed rate mortgage, somewhat defeating the object of them.
the last morgage company had $2000 in the escrow account and by law they are only supposed to hold 3 months tax and 5 months insurance
they returned some if it at the end of the year but they had it for ever getting interest on MY money.
muliply it by the thousands of morgages thay hold and they make a lot of interest on your money ..
PS IMPORTANT ...... as per the recent forclosures be very suspicioius of ARMS ajustable rare morgages
Good point on the escrow. I will handle it myself in the future and keep my interest. I'm still paying PMI actually, even though I passed the point where I would need it by now but I haven't quite reached the point where it is automatically canceled. I haven't been bothered to get another appraisal although mathematically, it is probably worth it and something I should hand over the $300 or so for - I'd make it back in six months or less.
not so sure depending on the bank there is a point when it is automatically canceled , ask them to cancel it they can only say no and you havnt lost anything .
You might want to just stay on your current lenders variable rate for a little bit to see what rates do. That way there shouldnt be any arrangement fees to pay and no tie in periods. It will give you a 'holding period' meaning if rates start to drop you can see how far they go up, if rates start to go up, then fix it quick, you get the best of both worlds...it will just mean you having to study it a bit more...
You might want to just stay on your current lenders variable rate for a little bit to see what rates do. That way there shouldnt be any arrangement fees to pay and no tie in periods. It will give you a 'holding period' meaning if rates start to drop you can see how far they go up, if rates start to go up, then fix it quick, you get the best of both worlds...it will just mean you having to study it a bit more...
We just refinanced from a 6.875% 30 year fixed to a 5.5% 15 year fixed.
They try and get you with the closing costs saying it will only cost up to x amount when it ends up been y amount.