Tuesday 12/16...Fed Cuts Rates to a Range

yes, float.

I am going to respond to several of the posters here. Nathan, if you are concerned, lock and forget about it. If you float you will more then likely get a better rate but if you are worried, 4.75% is still a great rate. Brad, thanks for the kind words. I have thought about putting what rate you can expect, but rates today or dependent on many factors such as credit score, where the property is, etc.. Someone with a 720 score, will get a better rate then someone with 699. I dont want to put a rate out there, then someone with a 660 credit score in a declining market feels they are getting ripped off. But i will try to give a good idea of what you can expect, i will just make sure i use a lot of disclaimers. Thanks for reading Vogol, thanks to you as well. If you locked a loan for no costs, that is a good rate. If you pay costs and a point you can probably get a rate around 4.75% tomorrow. I would encourage you to not chase a lower rate. Borrowing money for 30 years at 5% is an awesome rate. If you have a 2nd lien then it is a really good rate, but if you are doing 1 loan under 80%, you can probably do a little better, but there is a risk, rates could turn and then you get a higher rate. Suikam, thanks for reading. It will come down to the type of credit score you have. If your credit score is above 700, you should be able to get a no cost loan around 5.875 to 6%, if you pay the closing costs, then you should get to the low 5 to 5.125% and if you pay costs and 1 point origination, you should be able to lock at 4.75 to 4.875%. But many factors are still unknown to me, like where are you located, your credit score, your loan to value. I would tell your broker that you wish to pay the costs of the loan, ask him to pull the loan from the current lender and take you to a new lender.

S Hunziker, in my opinion you should refinance and look into a 15 year mortgage. You should be able to find one in the middle 4% range. A loan of 130k at 4.5% on a 15 year term makes your payment 994, so for a little more then you are paying now, you can shave 6 years off the first and 3 years off the 2nd which will save you thousands over the long term

Rates are not out yet this morning, but i suspect we will see 30 yr fixed rates in the middle 4% range depending on lender. Keep in mind, you can get a better rate if you pay a point so with no points 4.875 is pretty good but i would think you should be able to get a slighly better rate today.

Brad, definitely float into next year. Read my blog today about waiting to refi for a lower rate.