www.NewJerseyMortgageRates.org Have you been thinking about buying your own home, but you hesitate because you are not sure it is smart to make such a big move due to the current mortgage rates? Then you need to find out about the current rates so you can understand why now is the right time for purchasing a home of your own. http
mortgagegoalrates.blogspot.com Current Mortgage Rates NJ
NJ Mortgage prospects frequently ask loan originators where rates are heading. Up or down? My typical response is if I knew that I would be sitting fat, dumb, and happy on a beach somewhere. Determining which direction NJmortgage rates are heading is similar to timing the stock market. It's next to impossible and not recommended.
Instead of trying to guess which direction rates are heading, I try to have my customers focus on what they will be saving at the current rate. If the amount they are saving makes sense to them they should lock the rate and move forward. It's important to remember the 1 or 2% youare lowering your rate rather than the 1/8th of a percent you may save if rates go down. With that said, it isadvisable for consumers to learn how NJ mortgage rates are determined and if they have gone up or down? This will allow you to make sure you are getting thebestdeal possible when shopping for a NJ mortgage.
There are a number of sources available todetermine if NJ mortgage rateshave increasedor decreased, but the best is probably the 10 Year US Treasury Note. Although there is not an exact correlation, if you see the rate or yield onthe 10 Year US Treasurygoing one directing it is likely NJ mortgage rates will be doing the same. It is important to remember thattreasury rates/yields can change dramatically during the day and thus so can NJ mortgage rates. The reason I say this is that you want to make sure the rate you are quoted say in the morningis the same when it is locked after the loan officer receives your application. .
For example, lets suppose you are quoted a rate of 4.875% APY by ABCMortgage Companyin the morning.You tell the loan office you are speaking with that the rate soundsgood, but you want to speak with few other companies before youmoveforward. After speakingwith severalother companies you determine that ABC Mortgage has the lowest costs and the best rate so you decide call them to complete your application. The loan officer from ABCinformsyou that rateshad spiked up and the best they can offer at this point5% APY. In this situation you would be able to refer to a daily chart of the 10 Year US Treasury to see for yourself if rates had increased since that morning.
Understanding what direction rates have gone can also be helpful in the event that your rate lock expires. For instance, you may have locked your rate for 45 days, but due to some unexpected delays your rate has expires. Your loan officer tells you he can still close your loan but the rate will have to be a quarter point higher because rates have gone up dramatically since you first locked the rate. Even at the higher rate you will be saving several hundred dollars a month, but you want to be sure the lender you are dealing with is being honest. To make certain you could refer to a chart of the 10 Year US Treasury Note and confirm that the rate on the Note has increased dramatically over the last 2 months.
These are just a few examples of how knowing which direction the 10 Year Treasury has gone can help you be sure you are getting the best deal. Related Are Nj Mortgage Rates Going Up Or Down? Issues
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