Horizon Financial » South Carolina low mortgage rates http://www.horizonfinancial.org The Southeast's Leading Independent Mortgage Broker Fri, 09 Jul 2010 17:47:37 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 The Fed Adjourns From A 2-Day Meeting Today And What It Means For Mortgage Rates http://www.horizonfinancial.org/2010/04/the-fed-adjourns-from-a-2-day-meeting-today-and-what-it-means-for-mortgage-rates/ http://www.horizonfinancial.org/2010/04/the-fed-adjourns-from-a-2-day-meeting-today-and-what-it-means-for-mortgage-rates/#comments Wed, 28 Apr 2010 17:55:44 +0000 admin http://www.horizonfinancial.org/?p=793 The Federal Reserve adjourns from a scheduled, 2-day meeting today. It’s one of 8 scheduled Fed meetings for 2010.

Upon adjournment, Fed Chairman Ben Bernanke & Co. will release a formal statement to the market. In it, the Fed is expected to announce “no change” in the Fed Funds Rate. The Fed Funds Rate is currently in a target range of 0.0-0.25%.

The Fed Funds Rate is an inter-bank lending rate. It’s also the basis for Prime Rate, a consumer interest rate on which credit card payments are based, among other consumer loans. Prime Rate is equal to the Fed Funds Rate + 3 percent. Credit card rates, therefore, will likely stay flat today, too.

Mortgage rates, however, should change. Possibly by a lot. The 30-year fixed mortgage does not correlate with the Fed Funds Rate . The reason mortgage rates will change today is because, in its statement, the Federal Reserve will highlight various parts of the economy, identifying strengths, weaknesses and probable threats to growth. These observations influence investors with a stake in bond markets and future returns and, with Wall Street on edge right now — unsure of whether recent economic growth is a longer-term trend or a short-lived blip — mortgage rates could shoot higher or they could drop, depending on how traders interpret the Fed.

It’s a difficult time to be shopping mortgages in South Carolina. Further complicating matters is Greece’s recent debt downgrade to junk status. A small contagion fear is budding worldwide and, as a result, the flight-to-quality has picked up steam. Mortgage rates are down because of it but could reverse higher at any moment.

Therefore, if you’re actively shopping for a mortgage today, it may be prudent to lock your rate ahead of the Fed’s announcement and any major market reversal. Mortgage rates may fall today, but there’s very little room for them to fall. There is, however, a lot of room for them to rise. The Fed adjourns at 2:15 PM ET. Call or email to lock your rate.

Posted by Scott Fowler.  Scott can be reached toll free @ 877-627-9211 x 104 or email SFowler@HorizonFinancial.org.  www.ScottFowlerTeam.com

]]> http://www.horizonfinancial.org/2010/04/the-fed-adjourns-from-a-2-day-meeting-today-and-what-it-means-for-mortgage-rates/feed/ 0 Great Low Rates AND Low Closing Costs… http://www.horizonfinancial.org/2009/11/great-low-rates-and-low-closing-costs/ http://www.horizonfinancial.org/2009/11/great-low-rates-and-low-closing-costs/#comments Thu, 19 Nov 2009 18:39:02 +0000 admin http://www.horizonfinancial.org/?p=472 It’smoney one of those rare cases right now where you can get BOTH low rates and low closing costs.  For most of this year if you wanted a rate below 5%, you would have at least 1% origination fees (or points).  If you wanted $0. points, the rate would start at least 5%.  Right now loans with $0 points have never been more affordable.  Most $0. point loans can be had at 4.875% for 30 year fixed and some loans at higher loan amounts ($250,000. to $417,000.) and with higher credit scores can get rates as low as 4.75%.  This means even if you have a rate of 5.25% or higher, it can be beneficial to refinance now, because of the lower closing costs.  Rates are even lower for 15 year fixed for no points (4.5% or even as low as 4.375% for higher loan amounts).  This is great news for all homeowners in South Carolina and North Carolina.  With lower rates people are able to afford buying a larger home or homeowners are able to lower their existing mortgage payments and reducing their overall monthly budget.  Plus when you refinance, many time you will skip one mortgage payment, this can often save over a $1,000..  If you have a mortgage at 5.25% or higher, now is definitely the time to look at how much saving you may save.

-Gary Schoenholz- Loan Officer Manager www.GaryTheMortgageExpert.com 864-979-1111

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