Mortgage News Roundup - What to Know as You Try to Lock in a Low Mortgage Rate

Thursday’s bond market has opened in positive territory despite early strength in stocks. The major stock indexes are showing relatively minor gains with the Dow up 51 points and the Nasdaq up 26 points. The bond market is currently up 4/32 (2.35%), but due to weakness late yesterday we will likely see little change in this morning’s mortgage rates if comparing to yesterday’s morning pricing.

Mortgage rates for 30-year fixed mortgages were unchanged this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.90 percent, the same as this time last week.

The 30-year fixed mortgage rate fell early in the week, then spiked to 4.02 percent on Tuesday before settling to the current rate.

“Last week, rates dipped after Friday’s weaker-than-expected jobs report,” said Erin Lantz, vice president of mortgages at Zillow. “This week, with limited economic data scheduled for release and the bond market closed for Veterans Day, we expect rate movement to remain fairly muted.”

Additionally, the 15-year fixed mortgage rate this morning was 3.04 percent, and for 5/1 ARMs, the rate was 2.88 percent.

What to Know as You Try to Lock in a Low Mortgage Rate

Because of these consistently lower rates, people are asking how they can refinance or lock in a new mortgage at the lower rate. Here’s a rate reference guide to help you navigate this market and obtain the best terms on your financing.

Understanding the rate market: Most home mortgages in the U.S. are eventually packaged into bonds, and rates change as mortgage bonds trade in the open market each day. This is also why we post the Market Commentary on Monday’s so you can see what may impact mortgage rates during the week.

Lender rate quotes explained: A professional loan officer will take the time to explain each fee line-by-line as well as how your rates may change if you are applying for a variable interest rate.

Rate lock tips for refinancers and homebuyers: Once you’re ready to buy or refinance, you’ll want to lock in your rate, which guarantees that rate for a set number of days. However, timing is critical. If you lock in a rate and you haven’t submitted an application to your lender, then you’re unlikely to close on time for the locked rate. This is true for both new loans and refinancing.

Does Your Credit Score Affect Your Homeowners Insurance?

Yes. Your credit score plays a role in the homeowners insurance premium that you will pay once you purchase a home. Insurance companies use information in your credit report to calculate an insurance score. These are similar to credit scores. Insurance companies use these scores to help them predict losses by determining which consumers are more likely to file claims.

Insurers also consider your prior insurance claim history, the construction type of your home, the distance of your home from fire hydrants, fire stations and whether or not you have smoke detectors, fire alarms and a security alarm in your home plus other factors that vary from company to company.