Rates are lower today! Markets are reacting to pessimistic statements by the Fed yesterday. Stocks, oil and gold are all down sharply. Comparison mortgage rates with no lender fees are 3.75% on a 30 year, 3.25% on a 15 year and 2.75% on a 5/1 ARM. Click here for more details.


Look at today’s rates! These are not typos. You should be able to get a 3.75% interest rate on a $200,000 FHA loan with a $4,000 lender credit at closing. That’s crazy!

Click here to see today’s comparison rates with no lender fees.

Yesterday the Federal Reserve announced the $400 Billion “Operation Twist” and mortgage rates dropped drastically as a result. Today I share four things you need to know when rates dip this low.

Check out my special report in today’s episode:


(Watch it on your mobile phone or email reader here)

It has been an extremely volatile market over the past few months. We’ve seen some massive gains in the bonds market today and yesterday because of the Federal Reserve’s statement. They said there remains “significant” downside risks to the US economy.

In response, the Fed rolled out the $400 billion “Operation Twist” program. They will purchase long-term government securities and sell short-term money in an effort to keep interest rates near historically low levels until 2013.

The Federal Reserve will also reinvest pricipal payments on their current holdings of agency debt into mortgage-backed securities (MBS). Mortgage bonds loved this news, but stocks, oil, and gold did not.

Remember, the market is very volatile and driven by fear. This extreme dip in rates could reverse quickly.

Here are some things to keep in mind when rates dip like they did today:

1. Mortgage lenders are swamped

Rates have been low for several months, and most lenders are already extremely busy. This means they don’t always pass the savings onto you. You need to shop around even more now to find the lenders that are aggressively priced and want to take on new business.

2. You may need a 60 day lock

You may have to opt for a 60 day lock rather than a 30 day lock with some lenders. Take this into consideration when you search for a lender. Most are advertising shorter lock times.

3. Jumping ship can hurt

If you already locked your loan, it doesn’t always make sense to jump ship to a new lender for a .125% or even a .25% rate improvement. Work the numbers before you make a move based simply on interest rates. Your upfront appraisal costs are a big factor in this calculation.

Renegotiate with your current lender, at the very least. You both put a lot of work into your loan to get it through underwriting. Why start over if you don’t have to? Time is money.

4. Lock now

Don’t wait for a rate that will never come. Rates are amazing right now. Take advantage of them.

If you are looking for a better rate than 3.75% on a 30 year fixed loan with no lender fees, then you are not really in the market to refinance or buy a home.

Sorry to be harsh, but it’s true! If you tell your lender to call you back when rates improve because you are waiting for a better rate, I wouldn’t expect a call back today. They’re busy!

Remember the old saying on Wall Street:

“Bulls make money,
bears make money,
pigs get slaughtered.”

Get out there and lock your loan today. Take advantage of the lowest rates in history!

If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgageā€¦forever!

– Mike

PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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