Bellevue and Seattle Real Estate Mortgage Rate Watch 10/20/10
QE2 continues to receive attention from the Feds. The potential outcome with QE2 will help prevent deflation and provide that boost for the economy. The key factor is how much will be injected into the market. Gauging the perfect amount will be tough and announced on November 3, 2010.
Mortgage rates are continuing to hold right now. We are very close to the low levels of the year through this refinance opportunity. With the current trends of a weaker US dollar, this can lead to bonds weakening as well. If bonds weaken, start to sell off, that will force mortgage rates higher.
One question many Seattle home owners have asked is, can I refinance at no cost. Yes this is an option. Instead of opting for the lowest rate possible paying all closing costs, you would receive a slightly higher mortgage rate. With the higher mortgage rate, you will receive credit to cover the cost of the refinance. This allows a home owner to instantly break even and save money from day one.
**One important tip** When no cost is mentioned, make sure the lender is not rolling costs into the loan. That is not a no cost loan, if you chose this route, you are really adding your closing costs into the loan and amortizing the costs over 30 years!
Please ask questions and post comments.