Brian Ripp ~ Your Bay Area & Fremont Real Estate & Financial Agent » interest rates

Locking Your Loan Rate

Brian Ripp — Wed, 14 Apr 2010 16:49:02 +0000

You know that when you are seeking a mortgage you should shop around for the best rate. But because interest rates fluctuate, it is a good idea to consider locking your rate. A rate lock, also called a “lock-in”, is a lender’s guarantee that you will get a specific interest rate and number of points if you purchase a home within a certain period of time.

If you do not complete your home purchase or refinancing agreement before the lock expires and interest rates happen to rise, you will pay the higher rate. If interest rates happen to drop during the lock period, however, you cannot take advantage of them unless you rewrite the lock and pay an additional cost.

Before locking in a rate, keep these tips in mind:

Get your guaranteed rate lock in writing.
Lock in as many of the costs as you can, including the interest rate and points.
Shop around. Examine both the terms of the contract and its cost. Some lenders charge an up-front fee, while others offer the service at no cost.

Fed’s leaves key rate unchanged

Brian Ripp — Thu, 17 Dec 2009 18:12:51 +0000

The Federal Reserve today announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information suggests that economic activity has continued to pick up and that the deterioration in the labor market is abating,” the Fed said in a prepared statement.

“Financial market conditions have become more supportive of economic growth, although economic activity is likely to remain weak for a time. The Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability,” the Fed said.

To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve also said it will purchase a total of $1.25 trillion of agency mortgage-backed securities and nearly $175 billion of agency debt, and will gradually slow the pace of these purchases in order to promote a smooth transition in markets.

Interest Rates Remain Low

Brian Ripp — Mon, 02 Nov 2009 17:41:51 +0000

In Freddie Mac’s results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage averaged 5.03 percent for the week ending October 29, 2009 – up from the previous week when it averaged 5.00 percent.
Last year at this time, the 30-year fixed-rate mortgage averaged 6.46 percent.
“Interest rates for 30-year fixed mortgages have averaged just below 5 percent this year, which is the lowest 10-month average since the survey began in 1971,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

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