Mortgage rate trends
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.
Q: I am concerned that with interest rates rising so quickly lately that we will not be able to afford to buy a house next year. When added to mortgage broker's fees and closing, the cost of buying our first house could be out of reach.
A: Actually the rate for 30 year fixed rate mortgages is going down, in direct contrast short term rates that make the news. According to the Mortgage Bankers Association's most recent report, the current rate is 5.75%, down from 5.85% last month and 6.19% a year ago. Rising interest rates are probably not a significant risk for you if you properly plan for the house purchase. It is possible to completely avoid mortgage broker fees and cut the closing costs substantially by working with a company that does not get paid by commissions of points. I work with two mortgage companies that only do business this way and this saves clients thousands of dollars. A biggest factor in determining mortgage cost is your personal credit rating. The best thing you can do for yourself in the coming months is to make sure your credit report is as strong as possible. For more information and ideas, see the OnlineAdviser and do a search for "mortgage". There is an article about "Outsmarting Rising Interest Rates"
Summary
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http://tonynovak.com/onlineadviser/index.php?blog=2&s=mortgage&sentence=AND&submit=Search