September 20th Best Mortgage Interest Rates and Lock Recommendation

By:

Program Rate
30 Year FRM 4.42 Better by .01
15 Year FRM 3.81% Better by .04
5/1 Year ARM 3.61% Better by .01
Jumbo 30 Year FRM 5.58% Unchanged

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 IMPROVE SLIGHTLY IN VOLATILE ENVIRONMENT***

Mortgage rates have been on a losing streak as stocks moved higher but they reversed course today. Recent economic data has been mixed; however, investors seem to be in a risk-taking mood. I advise locking in this climate because if a bond and mortgage-backed securities sell-off occurs, rates could increase rapidly.

If closing in the next 45 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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