February 5th Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
February 05, 2010
| Program | Rate | |
| 30 Year FRM | 4.92% | Better by .02 |
| 15 Year FRM | 4.25% | Better by .01 |
| 5/1 Year ARM | 4.14% | Better by .02 |
| Jumbo 30 Year FRM | 6.35% | 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 *** MONTHLY UNEMPLOYMENT PUSHES RATES SLIGHTLY LOWER***
Today's monthly employment situation report was mixed The 9.7% unemployment rate was well below the?? expected 10% -- bad for mortgage rates and bonds. But it was offset by the loss of 20,000 jobs when new payrolls were expected to be up 15,000. Also good for mortgage rates was a sizable downward revision to the payroll data from December --?? previously it was thought that 85,000 jobs were lost during December, but today,?? losses were revised to 150,000.
If closing in the next 60 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.
