If you’re in the market for mortgage refinancing knowing when to lock or float can help you get the best refinance rates for your next home loan. The problem is predicting mortgage rates is a lot like herding cats. Some brokers claim they’ll “nail it” for you; however, there are simply too many variable to nail down at once.
That being said, Dan Green of the Daily Mortgage Reports has issued his mortgage rate predictions for the next week.
Dan’s predictions apply to conforming home loans (below the $415,000 limit) with Freddie Mac and Fannie Mae only. Jumbo mortgage loans, FHA streamline refinance, VA Interest Rate Reduction Loan (IRRL) and USDA streamline refinance loans are priced differently so his predictions do not apply to this type of transaction.
Mortgage Refinance Rates Prediction
According to Dan Green:
Mortgage rates are expected to drop this week, but don’t try to time it. Any number of factors could reverse mortgage rates higher in a hurry.
Dan bases his predictions on turmoil in the European economy.
What’s bad for the Euro is good for mortgage rates in the United States.
The prediction for the coming week is that mortgage refinance rates will continue to fall. If you haven’t already locked you should discuss floating your rate with the person arranging your refi.
If you decide to lock remember that paying to lock your mortgage rate is a common junk fee. Another common mortgage mistake is to get caught up playing limbo “how low can you go” with fees trying to get the lowest refinance rates.
Paying unnecessary discount points limits the benefit you’re getting from mortgage refinancing. The more you pay for loan origination or unnecessary discount points the more difficult it’s going to be to recoup your out-of-pocket expenses.
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You can learn more about getting the best deal on your next home loan without paying discount points, markup or lender junk fees by checking out my free Underground Mortgage Videos.
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I was denied a loan modification, now I want to apply for a FHA streamline refinance , how should I go about doing that? My mortgage lender is M& T Bank, I currently owe $388K