Choppy Mortgage Rates Mean You Need to Be Prepared
When you get ready to buy a home, one of the most important factors is the mortgage interest rate. However, with things as they are, even having good credit and getting your mortgage application approved does not mean that you will automatically get the best rate. Indeed, choppy mortgage rates mean that you need to be prepared to lock in rates when they are lower.
- Mortgage rates changed 68 percent of the days for the two months ending on May 19.
- Mortgage rates changed 73 percent of the days for the two months ending on June 20.
- Right now, mortgage rates change during the day 82 percent of the time.
This means that the mortgage interest rate you are quoted may be different the next day. Heck, the quote you got in the morning may not be the same quote you get in the afternoon. And with things as volatile as they are, you never know whether that change will result in your mortgage interest rate going up or down. Here is what The Mortgage Reports Blog recommends in the current climate:
When you’re shopping for a home loan, remember that Wall Street often sets the rates — not the loan officer. Your best protection from mortgage rate volatility, therefore, is to saddle up with a pro that understands how Wall Street works, and then be prepared to lock your mortgage rate as soon as possible.
Your mortgage interest rate can make a big difference
Mortgage rates matter because they make a big difference in how much you pay overall on your mortgage. Even half a percentage can determine, over the full course of a 30 year mortgage, a difference of tens of thousands of dollars in how much you pay back.
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