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May 06

Mortgage Rates Remain Low – Louisville Kentucky

Mortgage rates remained low today in spite of better-than-expected unemployment figures.  The bond market was off this morning, with mortgage-backed securities down 11/32 in early trading.  By the end of the day they had regained all of their losses and even gone into positive territory.

I am shocked that the rates are as low as they have been so far this year.  Hold on to your seats when they do start to edge up because it is going to be a fast ride. 

New Mortgage Interest Rate Calculator

I received a new piece of software this week, something our IT guys have been working on for some time.  It is a mortgage interest rate calculator designed to factor in all of the adjustments based on client’s criteria.  It really speeds up the process.

 While I was test driving the new calculator I discovered something exciting.  Conventional interest rates are tiered based on credit scores and loan-to-value but only if the term of the loan is 20 years or longer.  I never knew that!

I plugged in a 15 year fixed-rate loan and made this discovery.  The findings looked strange because there were no adjustments to the rate.  I pulled up the rate sheet and that is when I discovered there are no adjustments for loan terms under 20 years.  This little tidbit makes a 15 year loan a much better deal than the longer-terms.  With rates as low as they are today considering shorter-term makes a lot of sense.

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