Current Mortgage Rates
Monday, October 13, 2008
An agreement in which the home buyer is guaranteed a specified rate of interest, provided the loan deal is closed within a certain period of time, It also includes the cost to be paid at closing. Because the interest rate market fluctuates constantly and is subject to quick movements without notice, locking in a mortgage rate with a lender certainly protects you from the time your lock is confirmed to the day it expires. Lock-ins make sense in a rapidly-rising rate environment or when borrowers expect rates to climb during the next 30 to 60 days, which is typically the amount of time a lock-in remains in effect. A lock-in given at the time of application is useful because it may take the lender several weeks to prepare a loan application.
These days, however, automated loan practices have cut the time quite a bit. Lock-ins are not necessarily free. Some lenders require you to pay a lock-in fee to guarantee both the rate and the terms. If your lock-in expires before you close on the loan, most lenders will base the loan rate on current market interest rates and points. Lenders may charge you a fee for locking in the rate of interest and number of points for your mortgage. Some lenders may charge you a fee up-front, and may not refund it if you withdraw your application, if your credit is denied, or if you do not close the loan. Others might charge the fee at settlement. The fee might be a flat fee, a percentage of the mortgage amount, or a fraction of a percentage point added to the rate you lock in. The amount of the fee and how it is charged will vary among lenders and may depend on the length of the lock-in period.
These days, however, automated loan practices have cut the time quite a bit. Lock-ins are not necessarily free. Some lenders require you to pay a lock-in fee to guarantee both the rate and the terms. If your lock-in expires before you close on the loan, most lenders will base the loan rate on current market interest rates and points. Lenders may charge you a fee for locking in the rate of interest and number of points for your mortgage. Some lenders may charge you a fee up-front, and may not refund it if you withdraw your application, if your credit is denied, or if you do not close the loan. Others might charge the fee at settlement. The fee might be a flat fee, a percentage of the mortgage amount, or a fraction of a percentage point added to the rate you lock in. The amount of the fee and how it is charged will vary among lenders and may depend on the length of the lock-in period.
What's Covered By a Lock?
What are Lock Failures
Should Mortgage Brokers Play the Market?
Don't Wait - Lock In The Current Mortgage Rate Now!!
How to Move fast on Locking the Best Interest Rate?
What are Lock Failures
Should Mortgage Brokers Play the Market?
Don't Wait - Lock In The Current Mortgage Rate Now!!
How to Move fast on Locking the Best Interest Rate?
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Current Mortgage Rates*
Loan Type National Average |
|
| 30-yr. fixed | 6.25% |
| 30-yr. fixed jumbo | 7.62% |
| 15-yr. fixed | 5.88% |
| 15-yr. fixed jumbo | 7.12% |
| 7/1 ARM | 6.62% |
| 5/1 ARM | 6.38% |
| 3/1 ARM | 6.25% |
| 1-yr. ARM | 5.88% |
| 1-yr. LIBOR ARM | 6.25% |
| 10/1 ARM | 8.38% |
| 40-yr. fixed | 7.12% |
*Mortgage Rates Updated: 10/12/2008