Mortgage second » Home Mortgage

Mortgage Rates – What Drives Them?

admin — Sat, 05 Jun 2010 18:16:33 +0000

The question I get asked the most in regards to Massachusetts Mortgage Rates, is what drives them. My clients are amazed that it is not the fed. When the Fed makes a move, they can change a rate called the “Fed Funds Rate” or “Discount Rate”. These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed changes. This is due to the dynamics within the financial markets in response to inflation.

Massachusetts Mortgage rated are actually driven by Bonds, when the market is buying bonds they are helping drive the 30 year mortgage lower. It’s a double edge sword for many people; they want the stock market to due well, but they want interest rates to drop. However, most of the time when thee Dow is going up so are interest rates. And when it is going down interest rates improve.

So the next time you are looking for mortgage in Massachusetts make sure your mortgage person actually knows what drives rates, and how it all works. If they cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday’s newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday’s paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future?

By: Christopher Hills

Helpful Tips On How To Refinance A Second Mortgage

admin — Thu, 26 Nov 2009 00:47:46 +0000

Today, home refinance has been a hot area for lenders and homeowners alike. With much lower interest rates, it only makes sense to refinance a home mortgage that you’ve been paying on at 10% interest. These lower rates are also ideal for many to refinance a second mortgage. Here are some tips and things to consider with a second mortgage refinance.

Why Consider Refinancing a Second Mortgage?

Of course, getting a lower interest rate is a big part of it, but there is another important reason as well. You will find that in most instances you can refinance your second mortgage for the same monthly payment you currently have, but for a much shorter loan period.

Getting a 10 year second mortgage for what you were paying on a 15 year loan makes good financial sense. Refinancing a high interest rate second mortgage will save you a lot of money over time.

One of the keys in to successfully refinance a second mortgage is finding the right lender or mortgage broker. Look for a lender that will take the time to explain all the details to you. This is in addition to finding a lower interest rate and much more favorable loan terms.

Finally, know upfront what you can expect in refinance closing costs. The last thing you want at your loan closing is a huge surprise in unexpected fees or costs. A good lender will go over all costs with you before closing. And if they don’t, start looking for a new one.

You can find lenders who specialize in second mortgage refinancing online at many different websites. You’ll also be able to find out much more information about any potential lender so you can know that you are making your best decision.

By: Terry Edwards