Mortgage interest rates have been steady Falling to about 6.0% for a fixed rate, 30 year mortgage with no points.
Let's talk rates!
What do you want them to be?
No fees at all?
- Simple - just pay cash for the house.
If you want to "buy down" the rate, anybody in the business can do that! Currently, a 30 year fixed rate mortgage with a 2 point buy down can be had at a rate of 6.5%. The fees involved are approximately $1,000 for a $100,000 loan. We can "lock" this rate for 45 days.
Want a better rate? No problem, simply pay more buy down points and we'll give you a lower rate.
However, that's not always in your best interest!
Normally, it takes about 5 years to recover the cost of a 1% buy down of the interest rates. Sure, you're going to live there forever. But if you move before the 5 years is up, you have wasted that money.
If your company is moving you and they pay the fees and the "buy down" points, by all means take advantage of that fact and get the maximum buy down they will allow.
Sometimes, it pays to do something else with the money. Invest it, for example.