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Monday 5PM 12/14/09 Free Mortgage Rates Update
December 14, 2009 by Mortgage Rates Update · Leave a Comment
Monday 5PM 12/14/09 Free Mortgage Rates Update
Hello, I’m David Beadle. Here’s what’s happening from RateAlertNow.com.
Thirty-year mortgage rates rose for a fourth day in-a-row after considerable consternation about the fact the U.S. Congress is about to hike the National Debt Ceiling to almost $14 trillion. More borrowing by the government causes higher rates for you.
The national-average thirty-year fixed-rate mortgage is now at four-point-seven-five-percent with two-and-three-eighths points, up a quarter point from Friday, for an extra cost of two-hundred-fifty dollars on a one-hundred thousand dollar loan.
The five percent rate is now at three-quarters of one points, up an eighth-of-a-point from Friday, for an extra cost of one-hundred-twenty-five dollars on a “hundred grand” of borrowing.
Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.
When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.
The national-average fifteen-year fixed-rate mortgage was up an eighth of a point, with the four-and-a-quarter-percent rate at one-and-five-eighths points. And the four-and-a-half percent rate is now at a quarter of one-point.
Rates have now risen so much that I’m having to quote you “base rates” which are higher than last week’s “base rates”.
In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when rates are about to go up, and if you act quickly, you may be able to reach your local mortgage professional by phone to lock your rate +before+ the mortgage company has had time to execute an emergency rate change. The cost of my service is less than one dollar a day.
On Tuesday, we will see the wholesale inflation numbers for last month. The estimate is that price pressures at the producer level jumped almost three times as high as they were in October.
That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Tuesday morning for my next *free* mortgage rate update.
