Category: Interest Rates

RIGHT NOW IS THE BEST TIME TO LOCK IN AN INTEREST RATE

When is the best time to lock an interest rate? I get asked this question often as everyone wants the lowest rate. Interest rates, like stocks, change daily; it is hard to predict whether the rate will go up or down. It is best to see what your payment is at the current rate, and take a look at what the payment would be if the rate increases or decreases by ⅛. Interest rates are quantified by ⅛ s, such as 3 1/8%, 3 1/4%, etc. You will then be able to calculate the risk. Example: if a difference in...

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RATE ENVIRONMENT: UP OR DOWN?

Right now, we are in a decreasing interest rate environment. Is there somewhere you can look to determine if interest rates are going up or down? We look to the interest rate on the US 10-year Treasury Note as a leading indicator for mortgage rates. As the 10-year rate goes up, mortgage rates tend to go up. Similarly, as the 10-year rate goes down, mortgage rates tend to go down. The rate can change daily, or it can change within the day. We are made aware of impending rate changes by following the intraday trading of the 10-year Note. If...

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