Higher Mortgage Rates

[emily]

Hi,

Mortgage rates continue to rise steadily with the 30-year FRM increasing by seven basis points to close at 6.45% and 5/1 ARM increasing by five basis points to close at 6.24%.

Though the economy is more buoyant, from all parameters it is apparent that inflation has not yet reached a point where it can be contained. The rate of growth is not evenly spread with some sectors faring better than the others.

One of the effects of an upward looking economy is reflected in the rise in mortgage rates. Nearly half of all mortgage applications are for refinancing, which continues to be a popular option. But an increase in activity in the housing sector can only be apparent once the existing inventories are cleared.

Studies indicate that mortgage rates may remain steady this week without any large increases.

Thanks and Regards
Rob Thomos
robthomos19@yahoo.com
mortgages-expo.com

[uthai]

Factors impacting commercial mortgage rates

Depending on the strength of your finances, you can determine how favorable a commercial mortgage rate you’ll qualify for.

Down payment – Lenders require 20% to 30% of the purchase price up front. The more you can put down, the less you’ll have to borrow, which keeps your monthly payments lower.

Loan-to-value ratio (LTV) – This is the amount you want to borrow divided by the appraised value of the property. The lower your LTV, the better your interest rate will be.

Debt service coverage ratio (DSCR) – You must demonstrate to lenders that you can generate more money than you need to make payments. Your DSCR is determined by taking your net income and dividing it by your monthly interest and mortgage payments – a rate of 1.25 or higher means you’re a low risk for a commercial mortgage.

[rydel]

I opted for a lower interest rate 4% with a monthly payment of $454 - just to breathe easy. This is the mortgage I could afford. It would be unwise to sell this mortgage at this point when things are looking up.

[PPL]

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