Buying Down Your Interest Rate, The Truth About, interest rate mortgage.#Interest #rate #mortgage


Buying Down Your Interest Rate

Many borrowers and prospective homeowners out there are looking for the lowest possible interest rate, even if it means pulling money out of their own pocket at the time of financing.

Though most borrowers usually opt for a higher mortgage rate to avoid paying closing costs when buying a home or refinancing, some savvy homeowners will pay the one-time fees and take a lower interest rate to save money over the long term.

Of course, this strategy only really makes sense if you plan to stay with the mortgage for a long period of time, as associated savings aren t usually realized for several years.

Buying Down the Rate

If you re working with a bank or mortgage broker, you can easily buy down your interest rate by asking for a series of different rates and associated costs. This is known as buying down the rate, and is common practice in the mortgage industry.

You may have seen mortgage advertisements for no point mortgages or zero point mortgages, and may be quick to jump on them. And though these no cost loans could serve you well to leverage your money, for borrowers who have decent asset reserves and plan to pay off their loan, buying down the interest rate may be a better idea.

Should you buy down your rate?

Deciding whether or not to buy down your interest rate can be tricky, but if you get your hands on a rate sheet, you can make the decision quite easily. Most mortgage programs have a system where you ll pay a certain amount in fee for a specified change in interest rate.

For example, if your interest rate at the par rate is 6.25%, but you d like a rate of 6%, you ll need to buy down that rate by paying mortgage discount points.

Mortgage discount points are a form of prepaid interest that can lower your mortgage rate if you so desire.

A rate sheet may look something like this:

Each rate has a corresponding price, which is simply displayed as a percentage of the loan amount. In the example above, the par rate would be 6.25%, as it has an associated price of zero.

How much does 1 point lower your interest rate?

If you look at the buy-down ratio for each rate, it isn t exactly a perfect science. Well, at least not to us non-bankers. Usually as the interest rate goes lower, the price to buy down goes higher, often disproportionately. This actually makes sense because it gets increasingly expensive to go well below typical market rates.

As you can see, someone could pay one point for a rate of 5.875%, but be asked to pay nearly double that to get the rate down another eighth to 5.75%. That probably wouldn t make much sense.

This is why it s important to decide on a pricing threshold where it makes sense to buy it down instead of chasing a certain rate.

For some reason, homeowners seem to have a specific interest rate in mind that they must have. It s foolish to go after a precise rate, especially when the cost associated may eclipse the actual savings you d accrue over time with the slightly lower rate.

Even if you have your heart set on X rate, you may want to see what the lender is offering, then compare your mortgage payment at different rates and consider the associated costs for buying down to those rates.

Note: There may be a limit to how many mortgage points you can buy based on the new QM rules, along with how low the lender is willing to go. It also gets to a point where it no longer makes sense to keep going lower because the cost becomes excessive.

Look at a comparison of interest-only mortgage payments on a $500,000 loan amount

Interest rate of 6.25% with a price of 0.00 Monthly payment: $2604.17

Interest rate of 5.875% with a price of 1.00 Monthly payment: $2447.92

Total monthly savings: $156.25

Total cost to buy down rate to 5.875%: $5,000.00

It would take roughly 32 months to realize the savings associated with the lower rate of 5.875%. It may be worth it if you plan on staying in your home over a long period of time, but if not, it might be wise to stick with a slightly higher interest rate at no cost.

Do the math to figure out which rate makes the best sense to buy down based on your long term plan with the associated property. Buying down your interest rate can be a great decision, but also a foolish one if you pick up and go after a year or less.

And remember, don t focus on an exact interest rate. It simply isn t worth it sometimes, especially when the price doubles to drop the interest rate a mere eighth or quarter percentage point.


Current Interest Rates on Home Loans, Savings, Car loans – CD Rates, interest rate mortgage.#Interest


Today’s Interest Rates and Financial Advice:

Interest rate mortgage

Financial Advice

Would you like to buy a home but worry that you’d never qualify for a mortgage? It’s time to stop guessing and evaluate your chances to land a loan based on everything from how much you make to your credit score. Believe it or not, the odds are in your favor.

November 14th 2017

The average cost of financing a new or used car or truck has stayed low over the past year, making auto loans a bargain by any historical measure. And buyers with reasonably good credit can always take advantage of the discount loans automakers are offering on many models.

November 13th 2017

Lending money to your child is risky business. But if you can avoid the personal pitfalls and convince the federal government that this is really a loan, and not a gift, the Bank of Mom and Dad can be a financial boon for everyone in the family.

November 13th 2017

Here’s how to make all of the right decisions so that you’ll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

November 10th 2017

It’s not enough to find a good location at an affordable price. Condo buyers must consider lots of extra costs, from association fees and special assessments to how well the building is maintained and how strictly it enforces rules on everything from noise to pets.

November 10th 2017

You’ve scouted out the best mortgage rate and fought hard to get the best price on your new home. But your bargaining shouldn’t stop there. Here’s how you can save on everything from settlement fees to title insurance.

November 8th 2017

Interest rate mortgage

Interest ing Snapshot

Individual retirement accounts, or IRAs, are a great way to build financial security for you and your family. They’re easy to open and our simple strategy helps you make all the right decisions now, and in the years ahead.

Interest rate mortgage

Interest rate mortgage


Buying Down Your Interest Rate, The Truth About, current mortgage interest rate.#Current #mortgage #interest #rate


Buying Down Your Interest Rate

Many borrowers and prospective homeowners out there are looking for the lowest possible interest rate, even if it means pulling money out of their own pocket at the time of financing.

Though most borrowers usually opt for a higher mortgage rate to avoid paying closing costs when buying a home or refinancing, some savvy homeowners will pay the one-time fees and take a lower interest rate to save money over the long term.

Of course, this strategy only really makes sense if you plan to stay with the mortgage for a long period of time, as associated savings aren t usually realized for several years.

Buying Down the Rate

If you re working with a bank or mortgage broker, you can easily buy down your interest rate by asking for a series of different rates and associated costs. This is known as buying down the rate, and is common practice in the mortgage industry.

You may have seen mortgage advertisements for no point mortgages or zero point mortgages, and may be quick to jump on them. And though these no cost loans could serve you well to leverage your money, for borrowers who have decent asset reserves and plan to pay off their loan, buying down the interest rate may be a better idea.

Should you buy down your rate?

Deciding whether or not to buy down your interest rate can be tricky, but if you get your hands on a rate sheet, you can make the decision quite easily. Most mortgage programs have a system where you ll pay a certain amount in fee for a specified change in interest rate.

For example, if your interest rate at the par rate is 6.25%, but you d like a rate of 6%, you ll need to buy down that rate by paying mortgage discount points.

Mortgage discount points are a form of prepaid interest that can lower your mortgage rate if you so desire.

A rate sheet may look something like this:

Each rate has a corresponding price, which is simply displayed as a percentage of the loan amount. In the example above, the par rate would be 6.25%, as it has an associated price of zero.

How much does 1 point lower your interest rate?

If you look at the buy-down ratio for each rate, it isn t exactly a perfect science. Well, at least not to us non-bankers. Usually as the interest rate goes lower, the price to buy down goes higher, often disproportionately. This actually makes sense because it gets increasingly expensive to go well below typical market rates.

As you can see, someone could pay one point for a rate of 5.875%, but be asked to pay nearly double that to get the rate down another eighth to 5.75%. That probably wouldn t make much sense.

This is why it s important to decide on a pricing threshold where it makes sense to buy it down instead of chasing a certain rate.

For some reason, homeowners seem to have a specific interest rate in mind that they must have. It s foolish to go after a precise rate, especially when the cost associated may eclipse the actual savings you d accrue over time with the slightly lower rate.

Even if you have your heart set on X rate, you may want to see what the lender is offering, then compare your mortgage payment at different rates and consider the associated costs for buying down to those rates.

Note: There may be a limit to how many mortgage points you can buy based on the new QM rules, along with how low the lender is willing to go. It also gets to a point where it no longer makes sense to keep going lower because the cost becomes excessive.

Look at a comparison of interest-only mortgage payments on a $500,000 loan amount

Interest rate of 6.25% with a price of 0.00 Monthly payment: $2604.17

Interest rate of 5.875% with a price of 1.00 Monthly payment: $2447.92

Total monthly savings: $156.25

Total cost to buy down rate to 5.875%: $5,000.00

It would take roughly 32 months to realize the savings associated with the lower rate of 5.875%. It may be worth it if you plan on staying in your home over a long period of time, but if not, it might be wise to stick with a slightly higher interest rate at no cost.

Do the math to figure out which rate makes the best sense to buy down based on your long term plan with the associated property. Buying down your interest rate can be a great decision, but also a foolish one if you pick up and go after a year or less.

And remember, don t focus on an exact interest rate. It simply isn t worth it sometimes, especially when the price doubles to drop the interest rate a mere eighth or quarter percentage point.


Smart Search, Compare Home Loans, Mortgage Calculators, Investment Loans, Interest Rates, home mortgage interest rates.#Home


home mortgage interest rates

Please go to our commercial loans pages for all the information regarding commercial finance by clicking the button below.

WARNING: The comparison rates for all home loans are based on secured credit of $250,000 and a term of 25 years. The calculation includes the interest rate, upfront fees, ongoing annual or monthly fees and discharge of mortgage fees. The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.

Smart Search Finance is not making any suggestion or recommendation about a particular credit product from this website. You may be viewing a product that is unsuitable for your lending needs. It is highly advised that you speak to one of our qualified licenced advisors or the relevant financial institution to ensure that interest rates, product information and your financial needs are suitable to apply for that product.

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Home Loan Interest Rates – Best Housing Loan Rates & Service Charges, home mortgage interest


Home Loan Interest Rates

Are you wanting to purchase the house of your dreams?

DHFL offers you the best home loan rates that will help you maintain your monthly budget.

Best Home Loan Interest Rate offered from DHFL

Click here to download the Mock MITC format

DHFL Home Loan Interest Rates:

For Salaried / SEP (Re-substitution ROI)

For Self Employed / SENP (Re-substitution ROI)

DHFL ensures that you get the best services on your home loan, please find below the charges applicable on services associated with your home loan:

` 100 + Applicable GST for loans above ` 5 lac

b. Beyond 60 km: ` 500 + Applicable GST for first visit and ` 750 + Applicable GST for subsequent visits

Subsequent visits: ` 500 + Applicable GST

(Borrower/co-borrower is other than individual)

b. ` 5000 + Applicable GST for loan above ` 75 lac

a. Conversion scheme can be availed only after 1 year from the date of disbursement.

b. Conversion scheme is not applicable for loans sanctioned under Land Loans, Easy Land Cum Construction Loans and/or Composite Loan (for only those cases where construction is still not done) and for Surrogate Products.

Subsequent : ` 250 + Applicable GST

` 2,000 + Applicable GST for loans above ` 10 Lac

No conversion is applicable for loans sanctioned under Land Loans, ELCC/ Composite Loan (Only those cases where construction is still not done) and Surrogate Products.

We at DHFL, offer you the one of the lowest interest rate for a home loan which sure does make a huge difference to your overall budget. Also, with the current rate of interest on home loans, DHFL will help ensure that financial restraints do not come your way, while your purchase your very own dream home. So do not hesitate to take our help and invest in a lifetime of happiness for yourself.

*Terms and conditions apply. Limited Period Offer

Home mortgage interest rates


Current Interest Rates on Home Loans, Savings, Car loans – CD Rates, home mortgage interest


Today’s Interest Rates and Financial Advice:

Home mortgage interest rates

Financial Advice

Would you like to buy a home but worry that you’d never qualify for a mortgage? It’s time to stop guessing and evaluate your chances to land a loan based on everything from how much you make to your credit score. Believe it or not, the odds are in your favor.

November 14th 2017

The average cost of financing a new or used car or truck has stayed low over the past year, making auto loans a bargain by any historical measure. And buyers with reasonably good credit can always take advantage of the discount loans automakers are offering on many models.

November 13th 2017

Lending money to your child is risky business. But if you can avoid the personal pitfalls and convince the federal government that this is really a loan, and not a gift, the Bank of Mom and Dad can be a financial boon for everyone in the family.

November 13th 2017

Here’s how to make all of the right decisions so that you’ll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

November 10th 2017

It’s not enough to find a good location at an affordable price. Condo buyers must consider lots of extra costs, from association fees and special assessments to how well the building is maintained and how strictly it enforces rules on everything from noise to pets.

November 10th 2017

You’ve scouted out the best mortgage rate and fought hard to get the best price on your new home. But your bargaining shouldn’t stop there. Here’s how you can save on everything from settlement fees to title insurance.

November 8th 2017

Home mortgage interest rates

Interest ing Snapshot

Individual retirement accounts, or IRAs, are a great way to build financial security for you and your family. They’re easy to open and our simple strategy helps you make all the right decisions now, and in the years ahead.

Home mortgage interest rates

Home mortgage interest rates


Canada – s Mortgage Rates Forecast To Hit Bubble-Bursting Territory, mortgage interest rates forecast.#Mortgage #interest


Canada s Mortgage Rates Forecast To Hit Bubble-Bursting Territory

Mark the start of 2019 on your calendar. That could be when the housing juggernauts in Ontario and British Columbia finally come to a halt.

A new report predicts mortgage rates will rise as much as two percentage points by early 2019 — an increase that could put serious pressure on home affordability, and bring an end to soaring house prices in the Toronto and Vancouver areas.

“Borrowers should … make sure they can face an average increase of approximately 2 per cent in mortgage rates over the medium term,” economists at Desjardins noted in an analysis published Thursday.

Mortgage interest rates forecast

Homeowners “shouldn’t be caught off-guard if, in five years, the mortgage rates of less than three per cent currently being obtained by some borrowers have been replaced with rates closer to five per cent.” They noted this is particularly important for borrowers who still have several renewals left on their mortgage.

In its baseline scenario, Desjardins sees fixed-rate mortgages rising one percentage point between now and early 2019. And if the economy outperforms expectations, rates could rise by two percentage points by that time.

While that may seem like a small increase, economists note that, with Canadian household debt at record highs, even a small increase in rates could put financial stress on many people.

In an analysis last month, National Bank of Canada estimated that a one-percentage point increase in mortgage rates would add $388 to the monthly mortgage payment on an average house in Vancouver, and $369 to the average payment in Toronto.

“With the housing affordability problem in these markets being already acute, we doubt current home prices could resist such an interest rate hike,” economists Mathieu Arsenault and Kyle Dahms wrote.

Coming Soon: The Home Stretch

Get the news and analysis you need on Canada’s housing market with our weekly newsletter (launching soon). Sign up below and don’t miss the first issue.

The federal government is aware of the problem. It tightened mortgage rules last fall, requiring a “stress test” to ensure borrowers can handle their mortgage at the Bank of Canada’s posted mortgage rate. It currently sits at 4.64 per cent, about 1.5 percentage points higher than the discount rates the banks are offering on five-year fixed-rate mortgages.

However, those rules apply only to insured mortgages, and as house prices rise and mortgage rules tighten, a greater number of mortgage issued in Canada are uninsured.

Mortgage interest rates forecast

Bank of Canada Governor Stephen Poloz. Canada’s central bank is “acutely aware” of Canadians’ vulnerability to rising mortgage rates, says a new report from Desjardins. (Photo: The Canadian Press)

But Canadians can at least take comfort in the likelihood that interest rate increases will come slowly, the Desjardins report says.

“Fortunately, there are no signs pointing to a drastic interest rate hike,” the economists wrote.

They noted that the Bank of Canada “is well aware of the debt situation in Canada and will do everything in its power to prevent a sudden rise in rates.”


Prime Rate Forecast: Projected Prime Rate Values 2017-2047, mortgage interest rates forecast.#Mortgage #interest #rates #forecast


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Mortgage (ARM) Indexes

Prime Rate Forecast

Projected Future Prime Rate Values: 2017 – 2047

Last Update: Wednesday, Nov 15, 2017.

Note: This is based on the most recent (as of: Wednesday, Nov 15, 2017) 1-Mo T-Bill value that is greater than ‘0’.

Current Prime Rate: 4.25

Aug 2027 6.0 – 7.0

Sep 2027 6.0 – 7.0

Oct 2027 6.0 – 7.0

Nov 2027 6.0 – 7.0

Dec 2027 6.0 – 7.0

Feb 2028 6.0 – 7.0

Mar 2028 6.0 – 7.0

Apr 2028 6.0 – 7.0

May 2028 6.0 – 7.0

Jun 2028 6.0 – 7.0

Jul 2028 6.0 – 7.0

Aug 2028 6.0 – 7.0

Sep 2028 6.0 – 7.0

Oct 2028 6.0 – 7.0

Nov 2028 6.0 – 7.0

Dec 2028 6.0 – 7.0

Feb 2029 6.0 – 7.0

Mar 2029 6.0 – 7.0

Apr 2029 6.0 – 7.0

May 2029 6.0 – 7.0

Jun 2029 6.0 – 7.0

Jul 2029 6.0 – 7.0

Aug 2029 6.0 – 7.0

Sep 2029 6.0 – 7.0

Oct 2029 6.0 – 7.0

Nov 2029 6.0 – 7.0

Dec 2029 6.0 – 7.0

Feb 2030 6.0 – 7.0

Mar 2030 6.0 – 7.0

Apr 2030 6.0 – 7.0

May 2030 6.0 – 7.0

Jun 2030 6.0 – 7.0

Jul 2030 6.0 – 7.0

Aug 2030 6.0 – 7.0

Sep 2030 6.0 – 7.0

Oct 2030 6.0 – 7.0

Nov 2030 6.0 – 7.0

Dec 2030 6.0 – 7.0

Feb 2031 6.0 – 7.0

Mar 2031 6.0 – 7.0

Apr 2031 6.0 – 7.0

May 2031 6.0 – 7.0

Jun 2031 6.0 – 7.0

Jul 2031 6.0 – 7.0

Aug 2031 6.0 – 7.0

Sep 2031 6.0 – 7.0

Oct 2031 6.0 – 7.0

Nov 2031 6.0 – 7.0

Dec 2031 6.0 – 7.0

Feb 2032 6.0 – 7.0

Mar 2032 6.0 – 7.0

Apr 2032 6.0 – 7.0

May 2032 6.0 – 7.0

Jun 2032 6.0 – 7.0

Jul 2032 6.0 – 7.0

Aug 2032 6.0 – 7.0

Sep 2032 6.0 – 7.0

Oct 2032 6.0 – 7.0

Nov 2032 6.0 – 7.0

Dec 2032 6.0 – 7.0

Feb 2033 6.0 – 7.0

Mar 2033 6.0 – 7.0

Apr 2033 6.0 – 7.0

May 2033 6.0 – 7.0

Jun 2033 6.0 – 7.0

Jul 2033 6.0 – 7.0

Aug 2033 6.0 – 7.0

Sep 2033 6.0 – 7.0

Oct 2033 6.0 – 7.0

Nov 2033 6.0 – 7.0

Dec 2033 6.0 – 7.0

Feb 2034 6.0 – 7.0

Mar 2034 6.0 – 7.0

Apr 2034 6.0 – 7.0

May 2034 6.0 – 7.0

Jun 2034 6.0 – 7.0

Jul 2034 6.0 – 7.0

Aug 2034 6.0 – 7.0

Sep 2034 6.0 – 7.0

Oct 2034 6.0 – 7.0

Nov 2034 6.0 – 7.0

Dec 2034 6.0 – 7.0

Feb 2035 6.0 – 7.0

Mar 2035 6.0 – 7.0

Apr 2035 6.0 – 7.0

May 2035 6.0 – 7.0

Jun 2035 6.0 – 7.0

Jul 2035 6.0 – 7.0

Aug 2035 6.0 – 7.0

Sep 2035 6.0 – 7.0

Oct 2035 6.0 – 7.0

Nov 2035 6.0 – 7.0

Dec 2035 6.0 – 7.0

Feb 2036 6.0 – 7.0

Mar 2036 6.0 – 7.0

Apr 2036 6.0 – 7.0

May 2036 6.0 – 7.0

Jun 2036 6.0 – 7.0

Jul 2036 6.0 – 7.0

Aug 2036 6.0 – 7.0

Sep 2036 6.0 – 7.0

Oct 2036 6.0 – 7.0

Nov 2036 6.0 – 7.0

Dec 2036 6.0 – 7.0

Feb 2037 6.0 – 7.0

Mar 2037 6.0 – 7.0

Apr 2037 6.0 – 7.0

May 2037 6.0 – 7.0

Jun 2037 6.0 – 7.0

Jul 2037 6.0 – 7.0

Aug 2037 6.0 – 7.0

Sep 2037 6.0 – 7.0

Oct 2037 6.0 – 7.0

Nov 2037 6.0 – 7.0

Dec 2037 6.0 – 7.0

Feb 2038 6.5 – 7.5

Mar 2038 6.5 – 7.5

Apr 2038 6.5 – 7.5

May 2038 6.5 – 7.5

Jun 2038 6.5 – 7.5

Jul 2038 6.5 – 7.5

Aug 2038 6.5 – 7.5

Sep 2038 6.5 – 7.5

Oct 2038 6.5 – 7.5

Nov 2038 6.5 – 7.5

Dec 2038 6.5 – 7.5

Feb 2039 6.5 – 7.5

Mar 2039 6.5 – 7.5

Apr 2039 6.5 – 7.5

May 2039 6.5 – 7.5

Jun 2039 6.5 – 7.5

Jul 2039 6.5 – 7.5

Aug 2039 6.5 – 7.5

Sep 2039 6.5 – 7.5

Oct 2039 6.5 – 7.5

Nov 2039 6.5 – 7.5

Dec 2039 6.5 – 7.5

Feb 2040 6.5 – 7.5

Mar 2040 6.5 – 7.5

Apr 2040 6.5 – 7.5

May 2040 6.5 – 7.5

Jun 2040 6.5 – 7.5

Jul 2040 6.5 – 7.5

Aug 2040 6.5 – 7.5

Sep 2040 7.0 – 8.0

Oct 2040 7.0 – 8.0

Nov 2040 7.0 – 8.0

Dec 2040 7.0 – 8.0

Feb 2041 7.0 – 8.0

Mar 2041 7.0 – 8.0

Apr 2041 7.0 – 8.0

May 2041 7.0 – 8.0

Jun 2041 7.0 – 8.0

Jul 2041 7.0 – 8.0

Aug 2041 7.0 – 8.0

Sep 2041 7.0 – 8.0

Oct 2041 7.0 – 8.0

Nov 2041 7.0 – 8.0

Dec 2041 7.0 – 8.0

Feb 2042 7.0 – 8.0

Mar 2042 7.0 – 8.0

Apr 2042 7.0 – 8.0

May 2042 7.0 – 8.0

Jun 2042 7.0 – 8.0

Jul 2042 7.0 – 8.0

Aug 2042 7.0 – 8.0

Sep 2042 7.0 – 8.0

Oct 2042 7.0 – 8.0

Nov 2042 7.0 – 8.0

Dec 2042 7.0 – 8.0

Feb 2043 7.0 – 8.0

Mar 2043 7.0 – 8.0

Apr 2043 7.0 – 8.0

May 2043 7.0 – 8.0

Jun 2043 7.0 – 8.0

Jul 2043 7.0 – 8.0

Aug 2043 7.0 – 8.0

Sep 2043 7.0 – 8.0

Oct 2043 7.0 – 8.0

Nov 2043 7.0 – 8.0

Dec 2043 7.0 – 8.0

Feb 2044 7.0 – 8.0

Mar 2044 7.0 – 8.0

Apr 2044 7.0 – 8.0

May 2044 7.0 – 8.0

Jun 2044 7.0 – 8.0

Jul 2044 7.0 – 8.0

Aug 2044 7.0 – 8.0

Sep 2044 7.0 – 8.0

Oct 2044 7.0 – 8.0

Nov 2044 7.0 – 8.0

Dec 2044 7.0 – 8.0

Feb 2045 7.0 – 8.0

Mar 2045 7.0 – 8.0

Apr 2045 7.0 – 8.0

May 2045 7.0 – 8.0

Jun 2045 7.0 – 8.0

Jul 2045 7.0 – 8.0

Aug 2045 7.0 – 8.0

Sep 2045 7.0 – 8.0

Oct 2045 7.0 – 8.0

Nov 2045 7.0 – 8.0

Dec 2045 7.0 – 8.0

Feb 2046 7.0 – 8.0

Mar 2046 7.0 – 8.0

Apr 2046 7.0 – 8.0

May 2046 7.0 – 8.0

Jun 2046 7.0 – 8.0

Jul 2046 7.0 – 8.0

Aug 2046 7.0 – 8.0

Sep 2046 7.0 – 8.0

Oct 2046 7.0 – 8.0

Nov 2046 7.0 – 8.0

Dec 2046 7.0 – 8.0

Feb 2047 7.0 – 8.0

Mar 2047 7.0 – 8.0

Apr 2047 7.0 – 8.0

May 2047 7.0 – 8.0

Jun 2047 7.0 – 8.0

Jul 2047 7.0 – 8.0

Aug 2047 7.0 – 8.0

The Constant Maturity Treasury (CMT) indexes are the weekly or monthly average yields on U.S. Treasury securities adjusted to constant maturities. Yields on Treasury securities at constant maturity are interpolated by the U.S. Treasury from the daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.

The Treasury Bill (T-Bill) indexes are based on the results of auctions that the U.S. Treasury holds for its Treasury bills, notes and bonds.

This Prime Rate forecast has been prepared by Mortgage-X for general illustrative purposes only.

The information contained on this web page is not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. The calculation results should not be construed as a recommendation as to the advisability of applying for a Prime Rate indexed mortgage loan or a home equity line of credit that changes with the Prime Rate.

Neither Mortgage-X nor any of the participating financial institutions is responsible in any manner for any damages whether direct, indirect, special or consequential, howsoever caused, arising out of use of this forecast, or reliance on the information it contains.

Historical Data : Mortgage-X compiles historical values for the indexes which are widely used on adjustable rate mortgages (ARMs). Click here for a history of the Prime Rate (starting from January of 1990).


Interest Only Loans, Interest-Only Mortgage Loans and Rates, interest only mortgages.#Interest #only #mortgages


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InterestOnlyLoans.com is the original resource for information on interest only loans mortgages in the nation. First-time homebuyers, seasoned real estate investors mortgage professionals use our site daily to find information on topics such as interest-only mortgage programs, the LIBOR Rate, the Prime Rate, the COFI Index, Option Arm Loans more. You can view common interest-only mortgage guidelines, find interest-only mortgage lenders, calculate interest only mortgage payments, understand the benefits risks interest-only loans have over traditional fixed rates and even view the current Fannie Mae loan limits for conforming, jumbo super jumbo mortgage loans.

An interest only loan does not mean you will never pay principal on a home loan. These mortgage programs simply have what’s known as an interest-only payment option attached to the note. In all cases the note will state how long your interest-only payments will last. Let’s use a 5 year interest-only loan for example. On a typical 5 year fixed rate under an interest-only program the interest rate is fixed for the first five (5) years of the loan term and your only obligation are interest-only payments during this term. During the beginning of the 6th year (month 61) the unpaid balance is fully amortized over the remaining term and the borrower is now obligated to make principal and interest payments to the lender. Think of it as taking a 25 year mortgage (principal interest payments) on an adjustable rate note tied to the then current interest rates.

LIBOR (an abbreviation for London Interbank Offered Rate ) is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. The majority of interest-only loan programs are tied to the LIBOR index rate although some lenders use the CMT (treasury) and COFI indexes.

No, not for everybody. Interest-only loans are generally not long term loan programs. However interest only loans can provide a great option for many homebuyers such as:

Consumers who do not wish to tie up the equity in their home and would prefer to invest the money into markets of better return.

Consumers who are sure their income will grow but would like greater purchasing power today. For example, young lawyers doctors

Consumers who know the time frame for home ownership and are more concerned with lower payments than building equity.

Consumers purchasing investment property find interest only loans very valuable in areas where real estate appreciation is high.

This is not to say that an interest-only loan may not be right for you but every program has a certain profile of consumers that tend to show the majority of interest. If you think an interest-only loan can benefit your life it would be a good idea to contact a mortgage lender consult with your financial advisor to make the best decision for you and your family


Mortgage Interest Deduction, Affordability Crisis NYC, mortgage interest deduction.#Mortgage #interest #deduction


The Real Deal New York

Mortgage interest deduction

The Long View: The mortgage interest deduction is America s great inequalizer

Mortgage interest deduction

Mortgage interest deduction

Mortgage interest deduction

Mortgage interest deduction

Mortgage interest deduction

Mortgage interest deduction

President Trump’s federal budget, released Monday, proposes to slash $3.6 trillion in government spending over 10 years. It vows to spend money “only on our highest national priorities, and always in the most efficient, effective manner.” And yet, like so many prior budgets, it doesn’t touch one of the country’s most wasteful and perverse subsidies: the mortgage interest deduction.

In a recent New York Times magazine article, Matthew Desmond explains why the policy, which allows homeowners to deduct mortgage payments from their taxes, is misguided. The deduction is regressive. It disproportionately benefits wealthy homeowners with big mortgages. Poor people, who tend to rent, often get far less support.

But Desmond’s piece only scratches the surface of why the MID (and similar homeownership subsidy schemes like federally-backed mortgage insurance) are a bad idea. It doesn’t just benefit rich people, it benefits rich people at the expense of the poor by driving up their rents. It is, quite literally, a wealth transfer program that takes money out of the pockets of the neediest and gives it to wealthy property owners.

To understand why, here’s a brief explainer on how MID and federally-backed mortgage insurance drive up property prices, and how that, in turn, drives up rents for the urban poor.

According to a well known 1996 study by Richard Green, Patric Hendershott and Dennis Capozza, U.S. home prices may be between 13 and 17 percent higher than they normally would be because of the MID. The logic is simple. The deduction makes it cheaper for Americans to take out mortgages, which means they can afford to pay more for homes, which artificially inflates demand, which in turn drives up home prices. Fannie Mae and Freddie Mac, the federally backed mortgage giants, have a similar impact because they, too, drive down the cost of borrowing for millions of Americans and inflate demand.

“When we think of entitlement programs, Social Security and Medicare immediately come to mind,” Desmond writes. “But by any fair standard, the holy trinity of United States social policy should also include the mortgage-interest deduction — an enormous benefit that has also become politically untouchable.”

The MID and mortgage insurance aren’t the main reason urban home prices rose in recent years the credit goes to demographic trends, foreign investment and economic growth. But it’s safe to say they play a role.

In a perfect market, developers would respond to high home prices by building more, which would eventually push prices down again. But in practice it doesn’t work that way at least in cities. Urban land is scarce and expensive and zoning often limits building heights. This means developers can only do so much to respond to rising demand. A new study by construction services company BuildZoom blames this for rising home prices in the U.S.

Rather than build, developers often pick a more convenient way to cash in on rising prices: they convert rental units into condos or for-sale homes. New York is a prime example. Between 2013 and 2015, the median Manhattan apartment sales price rose by 18 percent, according to brokerage Douglas Elliman. During the same period the number of rental apartments converted to condos more than tripled from 355 to 1,299, according to Corcoran Sunshine Marketing Group. When new developments are built in Manhattan, they normally go the condo route.

As conversions picked up, the supply of for-rent apartments stagnated even as more and more people moved to Manhattan. So rents rose. Private equity giant Blackstone Group was one of the firms that spotted this trend and bought up thousands of Manhattan rental units. “When you have virtually no new supply of rentals net of condo conversions, that’s part of why we expect to see continued cash-flow growth,” Blackstone’s Nadeem Meghji said last year. “We think rental supply has been modest and will remain reasonably modest.”

Mortgage interest deductionAs condo conversions and a lack of new rental construction push up rents in Manhattan, more middle class New Yorkers are forced to move into cheaper neighborhoods, where they displace long-term residents, who in turn move into even cheaper neighborhoods, displacing yet other locals. And so, connected through these ripple effects of gentrification, condo prices in Manhattan and apartment rents in the Bronx move in the same direction: up (see chart).