rate outlook

bbinc · Joined: 05 Mar 2008 Posts: 1 1.41 Dollars($)

I am just finishing up a home. I don't think I can meet the deadline to convert my construction loan to the 30 year fixed. Awhile back ago my lender sent me a form for an extension. (three month) It would cost me $500. Without looking for the crystal ball, does anyone think that the current rates will hold or even go down? (hopefully). I would love to get below 6% to get my payment just right.

Thanks for everything!!!!

sara

Hi BBinc,

Welcome to the forums.

This week rates on 30 year FRMs are somewhere below 6% (with 0 points). What rate has your lender offered you? There can be variations from one person to another due to different financial situations and credit records. By the way, which is your state of residence?

0.10 Dollars($)

Thanks for your quick reply. Right now looking at the web site for Sun Trust mortgage, it was at 6.39%. I am at 8% for the construction phase, I purchased a float down option. I am in beautiful Bend, Oregon

helping_user · Posted: Thu Mar 06, 2008 1:14 am Post subject: RE: 30 year frm rates

Hi BBinc,

I think you should have a talk with a loan representative rather than just check the rate from the website. The rate put up is an average and may differ slightly from one person to another because there are lot of factors involved. But the good thing is, you have a float down option which means if the rates are down before closing, you will get a chance to make payments at a lower rate. Also, the rate will not increase if markets rates get higher prior to closing.

Thanks.

evolovik26 · Posted: Thu Mar 06, 2008 7:46 am Post subject:

If you dealing with retail side of the business the rates will typically be a tad higher. As far as what will happen no one knows banks are afraid to lower rates cause they dont want more bad loans. As far as anyting else follow the 10 yr treasury bonds if they are dropping so is the rate. If they are up then the rate is too.

Guest 0.10 Dollars($)

Actually Eugene. Mortgage rates have nothing to do any more with the 10 year treasury. Rates are based off of MBS which if you look at the sideways movement of the 10 year in the past week and the selling off of MBS would prove that. 10 year flat while rates are up .75% in the past week and a half

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

Rates have gone up over the last month or so. I would also take a look at other lenders as well, since Suntrust is not the most competitive.

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