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Rates edge upward

By Holden Lewis ·
Thursday, November 11, 2010
Posted: 10 am ET

Mortgage rates went up a little this week. How much? Read my Mortgage Analysis.

My hunch is that mortgage rates will trend lower over the next few weeks. My fellow Rate Trend Index voters differ. Half of them think rates will rise.

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Holden Lewis
November 15, 2010 at 8:53 am

Refi now instead of waiting six months. Ask the new lender to amortize the mortgage for less than 30 years. "Amortize" means to set the monthly payments to pay off the loan at a chose date. Here's an article about amortization that I wrote 4 million years ago.

You refinanced a year ago, so you could ask the lender to amortize the loan over 29 years instead of 30. Or you could ask that the loan be amortized so it's paid off 30 years from the time you bought the house. In other words, if you bought it in 2005, you could ask to amortize the new loan over 25 years, so it's paid off in 2035 -- 30 years after you bought the house and got the original loan.

Or you could ask the lender to keep your monthly payment unchanged, and see what that does to the amortization. It probably will cut several years off the payoff date.

November 13, 2010 at 12:43 pm

I refinanced my home a year ago, but now rate has dropped even lower, I found a deal with no closing cost and save my monthly mortgage by $200. Should i do it now or wait that rate will drop even lower within the next 6 months? what is the longterm saving if i refinance again because the 30 years will start again?

November 13, 2010 at 10:11 am

Do you think we will ever see the Tax Credit ($8,000)for New Homeowners again? Who could make that happen as a stimulus?

Holden Lewis
November 12, 2010 at 2:57 pm

Go ahead, and keep in touch with the loan officer to make sure the loan remains on track. The loan officer wants this loan to fund on time almost as much as you do.

November 12, 2010 at 1:59 pm

My rate lock offer that ends today at 3:00 is looking better: 4.125% with $1382 in closing costs on a 30 year cash out.

What is holding me back is the 1% they require as a deposit ($2104).

The wording on the lock form is: "This loan must be closed, funds disbursed by First Community Credit Union and in purchasable condition by the expiration date. If the loan does not close, the rate lock deposit will be forfeited. In addition, if the loan doesnot close for any reason, the rate lock deposit will be forfeited and I/We will be responsible for any additional cost incurred by First Community associated with canceling this loan for any reason that was paid to any other person or entity. I/we understand that Fires Community will make every effort to meet the time constraint of this agreement. There are several areas of processing over which we have no control. These areas include but are not limited to appraisal, title work and credit reporting."

The lock is 60 days. The appraisal is done and they have the credit report. Should I grab it or walk away and roll the dice?