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What You Must Know NOW About Getting a Low Interest Rate

If this short post in any way sounds condescending it is by no means intentional. There is, however, a good cause for expedience in delivering this information in today’s volatile market. Two weeks ago I could easily offer a 4.75% interest rate on a thirty year fixed rate FHA home loan. Last week that rate was as high as 5.675% and today it started out at 5.375% but has now dropped to around 5.25% (this is not an advertisement for a rate so I am not posting an APR but I will give you the APR if you email me or call me).

Rates are going to go back up. They have been much lower for much longer than almost every professional expected and it has little to do with what the government does as to whether they stay low for much longer. In part today’s rates are artificially low because of the massive trillions of dollars they have dumped into the market but they could go higher in spite of that fact and almost certainly will go higher quickly once that investment ceases.

Here is what you must know now in order to get the good interest rates:

FHA loan rates are not going to stay low forever. Waiting for them to get back into the fours is like waiting for a volcano to erupt. Most volcanologists will tell you they rarely do.

Once they start back up if you do not have your FHA loan application already submitted you may completely lose the opportunity to get the lowest rates. It costs the lender money to lock a loan and that’s why many charge lock fees (Novation has not charged them in the past).

If you drag your feet and miss the lower lock you may actually not qualify for the same FHA loan once the rates go up because your debt-to-income ratio will increase based on the monthly mortgage incrase as a result of the higher interst rate.

The urgency is for you to get pre-qualified instead of just sitting around watching the tube hoping to save a couple more dollars. In fact play around with the calculator to the left to see how much your payment will change based on a .125% interest rate. You want to wait to see if you “may” be able to save $9 a month then by all means do so. Remember, they go up just as fast as they go down and one day soon they are going up.

Will Interest Rates Go Up? Yes!

Nobody knows when but interest rates will go up. Seriously, nobody knows when. Rates have been at a historical low for months and months. You, your friends, your family, and your co-workers keep reading little articles like this one saying, “refinance now or buy now if you need to because rates are going up.” Still, you have not done so. No, you’ll wait until rates are up and say, “man I can’t believe I missed that opportunity!”

This past week we saw rates jump from 4.75% to 5.25% in less than 4 hours. We saw people who had not yet locked in their rate have their payments jump as much as $50 or more per month just by waiting a few more days.

Now we do expect rates to decrease slightly in the coming week but not one person knows when or how much. You can rest assured thousands of bloggers will be guessing and some will be right but not because they necessarily knew anything special – even though it does take knowledge and understanding to “get close”.

Do yourself a favor and call a LOCAL MORTGAGE BROKER or lender like Novation Mortgage if you are in Georgia or Florida and get the facts today. The chances of rates going higher are vastly greater than them going lower or even staying level.

Georgia and Florida FHA loans for purchase or refinance including the 203(k) and streamlined.