Saturday 5PM 12/5/09 Free Mortgage Rates Update

Saturday 5PM 12/5/09 Free Mortgage Rates Update

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

Thirty-year mortgage rates rose sharply this past week as the bond market began to worry about when the Federal Reserve might start hiking the rates it controls.

The national-average thirty-year fixed-rate mortgage is now at four-point-five percent with three points, up one-and-a-half points from a week earlier, for an extra cost of one-thousand five-hundred dollars on a one-hundred thousand dollar loan.

If you’d rather pay fewer points, the four-point-eight-seven-five percent rate rose one full point to one and one-eighth points during the week.

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 fifteen-year fixed-rate is now at four percent with two and five-eighths points, up five-eighths of a point from the start of the week. The four-and-a-quarter percent rate is also up five-eighths of a point to one-and-a-quarter points.

If you want to know instantly when rates are moving higher while floating your loan, you have to follow the changes in the points. If you had subscribed to my real-time mortgage rate alerts starting at the end of last month (while floating your 30-year fixed-rate loan), you would have been in a position to save more than a thousand dollars if you had been applying for a six-figure home mortgage through your local lender. The cost of my service is less than one dollar a day.

During the upcoming week, there will be a series of fresh data releases. These will include Weekly Jobless Claims on Thursday and the November Retail Sales Report on Friday.

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 Sunday for my next *free* mortgage rate update.