Mortgage interest rates

[tallgrant]

My wife and I are looking to buy a new home. She purchased our current home (a condominium) before we got married. We're looking to do a 30 year fixed loan to pay for it, and put about 20% down on the home. And we're looking in the Austin area.

We're just started to shop around, and are talking to mortgage brokers to get an idea of where we stand with loans. The first one we spoke to told us we had absolutely fantastic credit scores (our only debts are car loans and our current mortgage, and we've both got a well developed credit history), and said he could get us a loan at 6.25% rate. He acted as if this was about the best loan anyone could expect to receive right now.

I've been trying to follow the market, and most of the indications I've seen in the past few months have shown lower rates. It seems a little higher than I'd expect. Has anyone had any experience getting loans recently, and is this in line with the current interest rates?

We're in Austin by the way.

 

[zzzz]

Hmm...

Bankrate.com shows the national overnight average this week is 6.20%, last week it was 5.98%.

Their calculator for a $180K home with 20% down on a 30-yr loan in the Austin area produces a range of loan offers from 6.125% (the only one below your offer) to 6.875% (Chase and Bank of America).

I'm a bit shocked myself.

The Link

 

[GatorDave]

I had a thread on this exact topic not too long ago: The Link

There is a lot of good advice in there, especially from the guys who are actually in the mortgage business. The rates in that thread will be off since they have gone up since then, but the principles still apply.

The main point is, shop around. Get quotes from a few different places to make sure you are getting yourself the best deal. Remember that this is a business deal and you have to do what's best for you. Don't feel obligated to stay loyal to a certain broker just because they were the first one you talked to. They are trying to make money off you just as much as you're trying to save money.

 

[jimmyjazz]

Will this be a jumbo note (larger than $417K) or conventional?

 

[YoLaDu]

jeez.. i thought it was still hovering around 5.5% / 5.625%

When you are not in the market, I guess you don't follow it too closely.

 

[ninerhorn]

Rates have been steadily increasing for about the last 2-3 weeks. I am a broker in Austin and can do a little better than that but that is not a bad rate.

shoot me an email if you have any questions.


[email protected]


good luck

 

[TheFied]

I refinanced my 30 year 6 3/8% note into a 15 year 5 1/8% note back in February. Back then 30 year notes were around 5 1/4 - 5 3/8%. Glad I did it then.

 

[madscientist]

the link will have good info on rates and trends for all types of loans in your area, not to mention some articles that speculate the near future.

 

[dford28]

I've been shopping around for 30 year fixed rate for the last two weeks in the Houston area and 6.25% is about as good as you will find right now. This week has not been fun for trying to lock down a mortgage rate. It seems like every time I called a different lender the rate jumped an 1/8th . That makes it pretty challenging to know if you are really finding the bottom. Unfortunately I'm going offshore next week and I close on my house first week of July, so I wanted to lock something in this week.

At least there is always the opportunity to float the rate if things go back down, but that 10 year note has been skyrocketing as of late.

For the experts out there, how did I do? I put 20% down on a 30 yr. fixed. No origination fees or title insurance with a 6.25% rate.

 

[veggieboy]

Rates have definately gone up the last few weeks.

I am closing tomorrow, and kept putting off locking my rate down because everytime I called, it went up. I finally just said "**** it" and went with the 6.6% they quoted me the other day.

Good luck...