Monday 8AM 1/4/10 Today’s Current Mortgage Rates Update News

Monday 8AM 1/4/10 Today’s Current Mortgage Rates Update News

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates are now higher than they were at the end of 2008. On December 31st 2008, the “zero point” rate was 5.125 percent. Now, the “zero point” rate is 5.375 percent, for an increase of a quarter percent. That’s another way of saying that on a year-over-year basis, the “points” on a loan have risen by $1500 on the same “one-hundred thousand” dollar loan.

However, the total +range+ of rate changes during the course of 2009– from the high in early June to the low at the end of November was a full one percent.

The zero-point rate in the middle of the year was 5.875 percent. It fell sharply to 4.875 percent on November 30th. Put another way, the points on a thirty year fixed-rate loan fell by $6000 on the same one-hundred thousand dollar loan from June through November. Unfortunately, they reversed direction and went back up by $3000 during December.

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.

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 current 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 current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

This week, we will see a broad +array+ of data. On Monday, the focus will be on December national manufacturing results. Tuesday brings the first look at last month’s motor vehicle sales. Wednesday’s featured report will be the December “service-sector” update. On Thursday, we-will-receive the latest weekly jobless claims figures and on Friday, the government will report on the December unemployment rate.

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 later today for my next *free* mortgage rate update.