Mortgage Rate questions?

Hi i recently purcased my first town home. My question is on the mortgage rates, i want to know if i got a good rate on my home. 100k home with a 6.75% fixed for 30yr? And i also have a question on refinancing, when you refinance you basically get a lower mortgage rate right? Do you get any additional chages for refinancing or is it a win-win if you pay your mortgage on time?

Depends upon your credit and how much down you put, and whether you could prove you make enough to justify the loan.

If you're subprime with 100% financing and unverified income, you did fantastic!

If you're A paper with verified income, you got rooked - severely!
Par rate (no points, but none of your costs paid by lender) is right at 6.00.

Rate/term refinancing rates usually pretty close to purchase money rates, and my guess is that you've got a prepayment penalty as well, so refinancing right now is unlikely to be of net benefit to you.

6.75 is a good rate for right now...actually it's just below the national average. Dont re-fi unless you will get a rate below 5.5 because you still have to pay closing costs again.

yea thats a pretty good rate these days...u can refinance for several diff reasons. u can either refinance to lower ur rate, or mtg payments, or to get cash out or to have all ur debt paid off...whichever one u chose to do make sure u double check ur closing documents to make sure u dont have a prepayment penalty. say u have a 2 or 3 year prepay penalty and u sell or refi ur house before those 2 or 3 years are up, ur stuck paying a certain percentage of ur loan (ex: $12,000) so be carefull with that.

According to bankrate.com, right now the average rate for a 30yr fixed is 5.8%. My bank is quoting 6.25%. Your rate sounds high to me.

There are four reasons to refinance: to lower your interest rate , to extract cash, to change the time frame (i.e. go to a 15yr from a 30yr) , or to change from fixed to variable rate.

Mortgages originators vary widely on the fees they charge. It is possible to get a no fee refi, but it takes effort to find those deals.

If you didn't put alot of money down then that is a good rate for a 30 year fixed with that size loan amount. As for refinancing you shouldn't do anything unless you could improve your rate by at least 1/2%. Even then with your loan amount the savings probably wouldn't warrant paying the closing costs.

You'd be best suited to keep the current loan for a number of years and wait for rates to drop. At that time you should have some principal paid off and might be able to do a lower term mortgage (i.e. 20 or 15 years).

Finally make sure you pay your mortgage on time. Late payments will kill your credit score and then you would be lucky to get a 6.75% on a 30 year fixed.

The truth is if you look on bankrate.com current mortgage rates have gone down to 5.8% from 5.86% one week ago. So rates change rapidly. Your rate depends on your credit score. And they warn in the fine print that rates listed may include "points" which means if they included 1 point that would be 1% prepaid interest that should be added to the posted rate which would bring it up to 6.8 and that is more than you paid. So dance a jig! Unless you paid points also??

There are a ton of factors that determine your interest rate. Things such as credit score, documentation type, loan-to-value, loan amount, and more. A 6.75% 30-year fixed rate is a relatively low rate, although you could probably do better.

You don't necessarily want to refinance right away though because there will be more fees involved. Likely a few thousand, which will probably rollover onto your current mortgage.

Homeowners do not always get a lower rate when they refinance. Sometimes a homeowner will take a higher interest rate with better terms. An example would be moving from a 1-yr adjustable rate mortgag at 6% to a 30-year fixed mortgage at 6.75%. Though the rate is higher, the homeowner has the stability of a fixed rate, compared with the unknown fluctuation of a 1-yr adjustable.

Homeowners may also refinance to pull cash-out, and sometimes they may land a higher interest-rate if they need the cash badly, and simply can't get a competitive rate. Keep in mind that you likely won't be able to pull cash-out of your home for a good 12 months, as you need property seasoning.

Message me if you need more specific info.

your rate is quite good. the par rate currently is 6.50% so you're not that far off. and since it's for a 30 fix, then you should be set for quite some time. whenever the rates drop, if they ever do, then it would be a good time to refinance so long as your credit remains the same as it is today.

refinancing will not always get you a lower rate. again, if you credit gets better than it is now, then chances are you will get a better rate than you previously had depending on what the current rates are. for exmaple, if you refinanced 3 years down the road and the par rate was 7.5, then that's what you would get. you should generally wait about 3 years or more, sinec you just bought the place, before doing any refinance. this time will allow equity in your house to accrue thus making it easier for a refinance. people refinance for three reasons; get a better rate, switch to a fixed loan if they were on an ARM or something variable or get cash out. most cases people will refi for all three reasons but mainly it's for a lower rate. won't always get a lower rate but that's totally up to your credit score. if your score lowers from now until you refinance, you'll most likely have to take a hit on the rate in order to get what you want and a lower rate will not be it. probably some cash out or whatever. depending on how much equity you have in your home, you can actually use some of that equity to buy down your rate if need be. generally to buy down the rate equals 1% of the loan amount. most, nearly all, lenders will limit how much you can buy your rate down and it's usually about 2%. so in your case that would be $2000. you may think that's a lot of money to pony up but if you think about it, that two thousand now, will save you 10's of thousands down the road

whenever you refinance, you will essentially be taking out a slightly bigger loan than you initally started out with, reason being is that when people refinance, they don't want to pay any closing costs out of pocket. many people think that closing costs are a rip off but you're not going to find someone that will eat the closing costs for you unless you have A paper credit or a score of 750 or higher. since no one wants to pay 3-5 thousand dollars out of pocket, they'll take that money out of the equity in their home and tack it onto the old balance of the loan. if you want to figure out how much your refinance will wind up costing, take the balance owed on your current mortgage, take 5% of the amount and add it on to the balance then add any cash out, if you are taking any, onto the balance and you'll have your total amount of what the refinance will be for. next thing you need to know is your appraisal. hopefully it will have gone up since you last bought the house but sometimes it's not always the case. DO NOT get an appraisal done prior to applying for a loan. most times it will hurt you more than help you. reaons being if you needed your house value to be a certain amount, and your own appraisal came in lower, then you're screwed. when you apply for a loan, your bank or lender will find the necessary appraiser and get the appraisal they need in order to close your loan. real simple.

PAY YOUR MORTGAGE ON TIME. do not fall behind or it will greatly affect your chances of gettng a good rate for a refinance. even if you are late once or twice, that will seriously hamper your ability to get the loan/rate you want.

I am a mortgage broker and you rate was not bad for 100% financing. It could have been better but that is always the case. You need to run an amortization table on your new rate to see what you will save in interest with a refinance. There is NO SET RATE to justify a refinance. With a larger amount of money a small change will save you many dollars of interest.

Matt
http://www.diversifiedlender.com/
http://www.minnesota-mortgage-rates.net/
http://www.realestateagentlive.com/

A 6.75% fixed rate 30-year mortgage is a good rate. You'd have a hard time doing better than that right now. As for refinancing, however, BE CAREFUL. There's no point in refinancing unless interest rates drop at least half a percent. Yes, the whole point of refinancing is to have lower monthly payments, but one thing you need to bear in mind is when you refinance you'll also be paying at least a couple of thousand dollars in closing costs. You can have them roll that into the mortgage for you, but that may affect the rate you get, so it's not always the best way to go.

It's a good rate for the time being. They're about to get higher.

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