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Mortgage Rate Trends

admin — Sun, 03 Jan 2010 20:36:21 +0000

Determining mortgage rate trends is thought to be a difficult activity, however with access to many mortgage, banking and economic indicator sites, figuring out mortgage rate trends is easier than you think.

Sites like zillow.com and bankrate.com are excellent resources for tracking and predicting where mortage rates will be headed. For example, on zillow.com, you can track mortgage rates for the average 15 and 30 year rate based on daily, weekly, monthly or quarterly charts. Note that rates are different for each state, so rates shown on sites like zillow.com show the average rate across all states.

To find local rates, it is best to search for mortgage companies in your local area. For example, if you live in Austin Texas, one of the local mortgage companies called SweetWater Mortgage shows rates for the local area and Texas. Rates can be as much as a 0.5% difference from state to state, so make sure to check your local rates in comparison to the US average mortgage rate trends.

Bankrate.com provides a zip code input form so the site can cater mortgage rates to your specific area. The search results will provide the lowest rates around and disclose any points or fees associated with obtaining that specific mortgage.

Next time you are looking to find out current mortgage rate trends and understand what direction mortgage rates are headed, look no further than you local mortgage provider web sites or industry specific sites like zillow.com.

Other Articles:

Getting the Best Mortgage Rate on Investment Property Loans
HUD Foreclosure Properties
Residential Hard Money Loans

Investment Property Loans – Getting the best rates

admin — Thu, 05 Nov 2009 04:14:48 +0000

Have you ever wondering why investment property loans have higher rates compared to primary residence loans? The simple answer is that banks and lending companies consider the property a higher risk since the owner does not plan to live in it. Since the owner is not occupying the property, the consensus amount lenders is that the property will not be taken care of as well, resulting in a greater risk for the lender. Investment property lenders generally have a 1% – 1.25% adder to the current mortgage rate trends. So if the current 30 year fixed rate is at 5.5%, lenders will offer investors a mortgage of 6.5% – 6.75%. It is very wise for a property investor to get rate quotes from several lenders, and start negotiating between the lenders. The reason is that some lenders consider investment property to be minimal risk, especially if you have an excellent credit score. Rates vary drastically between lenders, and with some simple steps you can acquire an investment property loan with a rate close to or within 0.25% of the what primary mortgage rates are offering.

So how can lenders offer such low rates for investment properties? Lenders can wrap up the 1.25% into closing costs, and some even reduce their fees by this amount to win over borrowers so they do not go with other lenders. So it is very wise for those seeking investment property loans to shop around, as there are very competitive rates out there.

Learn how to compare investment properties through Cap Rate or Capitalization Rate analysis.