January 22 Best Mortgage Interest Rates and Lock Recommendation

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Program Rate
30 Year FRM 4.92% Better by .03
15 Year FRM 4.25% Better by .02
5/1 Year ARM 4.12% Better by .02
Jumbo 30 Year FRM 6.33% Better by .02

Here is today's look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac's AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES STEADY AS STOCKS CONTINUE TO DROP***

Today's mortgage pricing is all about the stock and bond markets. There is no release of economic data. Equities this morning opened down again, but the rally in the bond and mortgage-backed securities did not keep rolling. Many who invested earlier took the opportunity to sell and keep their profits. Fixed income securities are pretty much in a holding pattern in anticipation of next week's Treasury auctions. Mortgage rates are little changed from yesterday.

If closing in the next 30 days, I would LOCK my rate; otherwise, I would FLOAT my rate. This is only an opinion--what I would do if I were closing a mortgage at this time. Your decision may depend on other factors such as the strength of your loan approval and your tolerance for risk, and must be made with those in mind.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.
Posted in mortgage

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Comments (scroll down to add your own):

  1. Hi Jerry,
    Glad to hear about your float down. Thanks so much for telling me; it's nice to know this is useful information.

    Liz

    http://

    Comment by Liz Freeman — February 10, 2010 @ 03:58PM

  2. Liz,
    Thanks for the information. I spoke with my loan officer, and was able to get a float-down free of charge! I'd like to sit another few weeks just in case the numbers move.

    Comment by Jerry — February 09, 2010 @ 04:36PM

  3. Hi Jerry,

    In general, once you have locked a mortgage rate, you and your lender have made a mutual commitment to each other. The lender secures the funds and has to honor your lock even if interest rates increase, but if they drop you don't get to take advantage of that. There is one exception: if you have a "float-down," you can lock in your loan and if interest rates are lower when you close on your mortgage, you get the lower rate. Most of the time, there is a fee for a float-down, but on occasion lenders include them at no charge.

    Liz

    http://

    Comment by Liz Freeman — January 25, 2010 @ 09:46AM

  4. I was just approved for a low rate with Intercontinental Capital Group to refinance my home. If I lock it in now and rates go down, will I be able to adjust my rate without any kind of fee?

    Comment by Jerry — January 25, 2010 @ 08:27AM

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