Mortgage Rates Cheaper at the Table. Unchanged in Principal

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Posted To: Mortgage Rate Watch

Mortgage rates got cheaper at the table today but didn't improve in principal.....( INSTANT RIM SHOT! ) What I mean by "cheaper at the table" is the cost to permenantly buydown your mortgage rate improved by about 0.25% today, as a percentage of your loan amount. That is, if you are floating your mortgage rate and want to be quoted the additional closing costs to float your mortgage rates from, for example, 4.75% to 4.625%, your closing costs would be 0.25% (of your loan amount) cheaper. What I meant by "didn't improve in principal" is....the best execution par 30 year fixed mortgage rate is still 4.75% for very well qualified customers. Although closing costs are 0.25% cheaper (of the loan amount) to float down to 4.625%, the cost to permanently buydown your mortgage rate to 4.625% is still...(read more)

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Source: www.mortgagenewsdaily.com

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