Mortgage rate update for the week of February 11, 2013
Although still very low, mortgage rates have been trending higher. This morning I’m updating a quote for a Seattle home owner who is considering refinancing. The same rate I quoted her a month ago today at “par” (no discount points) will now cost a full discount point or is 0.125 – 0.25% higher in interest rate with similar pricing. I have more on current mortgage rates below.
As the economy improves and the stock market rallies, mortgage rates tend to rise. This is because investors will trade the safety of bonds (like mortgage backed securities) for the potential better return with stocks.
Here are some of the economic indicators scheduled to be released this week which may impact mortgage rates.
Wednesday, February 13: Retail Sales
Thursday, February 14: Initial Jobless Claims – Happy Valentines Day!
Friday, February 15: Empire State Index and Consumer Sentiment (UoM)
Monday, February 18: PRESIDENT’S DAY. Mortgage Master Service Corporation will be closed in observance of this holiday.
This morning, I’m updating a mortgage rate quote for a returning client based on a rate term refinance. They have credit scores of 740 or higher and the loan to value is estimated at 75%.
30 year fixed: 3.500% (apr 3.660%). Principal and interest payment (P&I) is $1315.70 with $6205 in estimated closing cost (including discount point). Returning to current principal balance in 18 months.
30 year fixed: 3.625% (apr 3.721%). P&I=$1327.11 with $3852 in estimated closing cost. Returning to principal balance in about 14 months.
30 year fixed: 3.750% (apr 3.826%). P&I=$1338.40 with $1955 in net closing cost (after rebate rate credit). Returning to principal balance in about 10 months.
15 year fixed: 2.875% (apr 3.052%). P&I=$1992.14 with $4091 in estimated closing cost. Returning to principal balance to in about 5 months.
15 year fixed: 3.000% (apr 3.130%). P&I=$1995.78 with $2244 in net closing closing after rebate credit. Returning to principal balance in about 4 months.
If you are considering buying or refinancing a home anywhere in the state of Washington, I am happy to help you! I have been originating mortgages at Mortgage Master Service Corporation since April 2000. We offer conventional, FHA, VA and USDA mortgage loans including HARP 2.0 and Fannie Mae Homepath. Click here for your personal mortgage quote.