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Rene
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 Posted: Fri Oct 12, 2007 10:43 pm Post subject: Should we get lower rates once FRM rates go down? |
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We have planned to buy a second home. Our first time home is in California. We did a short sale on that and got around $50,000 less what he needed to pay to get out of the loan. Our credit is still ok though and we've started renting in newyork as there was a job shift on my husband's part. We were thinking of going for 30 year loans, fixed rate though because we wanted to wait for fed to lower the rates. Once that is over, do you think we will be able to get low rates? If possible we would buy within thenext 5-6 months, so when do we need to pre-qualify?
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 larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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| Posted: Sat Oct 13, 2007 2:39 am Post subject: |
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Hi Rene,
FED is not going to drop the interest rates in this October. As you know that interest rates fluctuate with the market, so you should take a close look on market and as soon as the interest rate goes down you can go for the loan. And yes if you take 30 years fixed rate, you will have a lower interest rate but still, it depends upon your credit report and debt to income ratio. |
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Michel
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| Posted: Sat Oct 13, 2007 4:04 am Post subject: |
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Hi,
The present rate for a 30 years fixed mortgage is a little above 6.1% and for 15 years it is something around 5.74%. Although this has increased from what it was in the last week but on an average it is quite low.
I think you can start shopping for your loan right away if you are planning to buy within 5-6 months. It takes time to get the whole thing done. And the rate which you can avail also depends on your credit score as well as credit history. |
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ckalvesmaki
Community Experts
Joined: 28 Jan 2006
Posts: 378
Location: Dallas
56.65 Dollars($)
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| Posted: Sat Oct 13, 2007 10:55 am Post subject: |
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Rene,
A short sale is considered a foreclosure under conforming guidelines......You will not be elgible for a conforming loan for three years...
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livinginnky
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Joined: 08 Sep 2007
Posts: 637
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| Posted: Sun Oct 14, 2007 2:20 pm Post subject: |
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The fed lowering their rates doesn't have a direct effect on mortgage interest rates. Rates are low now and who knows where they will be in 6 months.
The best time to prequalify would be 2-3 months before you plan on purchasing. You will have to provide updated documentation right before closing though so be prepared. Also you can normally lock interest rates for up to 60 days although it costs a little more than a standard 15-30 day lock.
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Eric Matthews
Mortgage Refinance and Home Loan Guide |
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Rene
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| Posted: Mon Oct 15, 2007 5:14 am Post subject: |
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| So, that means i cannot get a conforming loan for 3 years but there are chnaces of my pre-qualifying, if i would go by what Eric says, is it? and are there other options that I may look for? |
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livinginnky
Moderator
Joined: 08 Sep 2007
Posts: 637
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| Posted: Mon Oct 15, 2007 11:07 am Post subject: |
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| Quote: | | So, that means i cannot get a conforming loan for 3 years but there are chnaces of my pre-qualifying, if i would go by what Eric says, is it? and are there other options that I may look for? |
It depends on the lender as far as the time after a foreclosure goes. Most consider these things a foreclosure - including a house in bk, short sales, deed in lieu, and foreclosures themselves.
I was saying it is a good idea to start as soon as possible. A good loan officer won't always try to push you into a loan right away if it is not the best option. It just depends on what programs are available. It might be good to wait 3 years, it might be possible now. There is a lot of additional information that is needed in order to say what exactly to do.
Also I would like to reiterate that the fed does not control mortgage interest rates. They are in control of banking rates that do not have a direct affect on mortgage rates.
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Eric Matthews
Mortgage Refinance and Home Loan Guide |
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