Rates are flat today. Bonds are losing some ground today and we’ve seen rates go up yesterday. I hope most of you took my advice and locked in ahead of the re-price for the worse. We are now testing the 200 day moving average floor of support. If we push through this, we could see rates get worse. Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.625% on a 15 year fixed, and 2.956% on a 5/1 ARM (click here to get the details).

Todays question is from Jimmy W.
“Is there a normal drop in rate that makes refinancing worth doing and should I do a no-closing-cost loan to avoid costs?”

My answer is in today’s video:

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

The problem is most people don’t know that answer or their situation changes over time. So I typically go with a 5 year rule. Does it make sense to refinance or buy down the rate based on being in the house or mortgage for 5 years. There are several factors that go into a break even point and it will be different for every person. Just because rates drop a point doesn’t mean it always makes sense to refinance. It depends on if you have a $80,000 mortgage versus a $300,000 mortgage and if you plan on staying in the house for 2 years or 15 years. A true mortgage originator can work these numbers for you very easily and give you different options based on your unique situation. I always like to point out that the lowest possible rate is not always the best deal. It’s a combination between rate and costs that equal the best deal possible.

With all of these different options, wouldn’t it be easier to just start over? Well if you decide to hit the reset button and start your life over in a new place, I found the top ten places that have the best job growth and had the most affordable home prices. These don’t usually go hand in hand so if you find yourself in one of these areas consider yourself very lucky. You may just see some people from Las Vegas moving to your home town. Check it out by clicking here.

It would be awesome if you could help me in my mission to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.  Let’s change the way people shop for a mortgage…forever!

See you tomorrow!

– Mike

PS. To ask a question, get advice, or find out what your lender is making off 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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