No Problem! Just like to see the info being shared.

Von Bongo, JJ, BlackHawk, and others who would like to chime in, I know no one can read the future, but what are your feelings regarding the direction of the rates. Do you think they have bottomed, or do you think they might drop some more? Either way, I think now is a good time to take action!

lotoparty, usually helocs are variable rate loans. A true heloc is also not ammortized for any term. They are interest only payments usually due in 15 years. But, obviously if you make interest only payments you will never pay it off. I usually give my customers a "target payment" so they can have it payed off at their desired date. Just make sure it is a true fixed rate(and for how long) and it sounds like a good deal! Just watch out, some credit card companies have fine print stating that if you ever make a late payment your payment will go to __%. I know we never make late payments, but accidents happen. And when they say late, sometimes they mean ONE DAY late.

Like I tell my customers, if I could predict rates I would be a millionaire!!! :D And I am not.

My personal opinion is they have come close to bottoming out. I can't see them going down any more than a another 1/8%. I think there may be a day here or there(or half day) when they are a little lower. But for the most part they are there.

But, like I said, if I could predict rates I would be out on my new 38' Donzi ZR somewhere instead of here working. :D

To expand on that, anyone considering a re-fi right now get the ball rolling with your broker or bank. Let them clear all of your conditions and then you can wait and see what they do. If there is a day when they go lower you can lock your rate that day and close quickly.

I agree if I knew where rates were headed, I'd already have that 42 Tiger on order.

It's hard to see rates going a lot lower but I also wouldn't be shocked to see them in the high 5's for 30 years. What I tell people is when you get a rate you can live with for 30 years go for it, your just as likely to hit the top as the bottom and if rates go lower (enough) you can always refinance.

I have to believe that over the next 30 years you will find very few times you would be unhappy with a 6.25% rate

Ok, we are just about to refinance. Actually the appointment to do the paperwork is tonight. His rate just dropped to 6.4 for a 30. According to your crystal ball should we hold out a bit longer or lock in?

What exactly are mortgage rates based on?
 

Seems like I remember it being based on one of the long term bonds, but I don't recall which one. When we bought our house in January, the mortgage rates seemed to follow the stock market - when the stocks increased, the mortgage rates seemed to rise as well. Why?

Just saw that the market gained 300 points today. Hope that doesn't mean the low interest picnic is over before I can lock! :eek:

Cord, that's where I am at today (6.375%). However, I NEVER tell my clients what to do. If I tell you to lock and they go up, I'm your hero. But, if I tell you to lock and the go down, you hate me.

If your happy with 6.4 lock it in, if your willing to take between 6 and 7%over the next 60 days float.

Is the uncertanty worth gaining say 1/8th to 1/4 point? Are you willing to pay 1/4 more if your wrong? Only you can answer your tollerance for risk. One thing I also do when people ask me that is calculate the payement for them at say 1/4 lower rate and see if the possible savings is enough to take the chance on.

Like Blackhawk says, I never tell you what to do. I just give the facts as they are today.

Budman, I will try to give you an answer to that. Although I don't follow that "side" of it too much, I just look at the cause and effect.

When the stock market is doing poorly the bond market is typically stronger because people start pulling money out of the stock market and investing in bonds. Mortgage rates typically follow the 5 year bond market. So, when the bond market is strong rates are lower.

That's how I understand it anyhow. I am sure someone can expand on it though.