The Smart Team of NOVA® Home Loans

Mortgage Rates Match 2-Week Lows

Posted To: Mortgage Rate Watch

Mortgage rates moved lower for the 4th time in 5 days today, bringing them to their lowest levels since February 9th. The caveat to any discussion of rate “movement,” however, is that the changes have been so small that they can really only be measured in terms of closing costs. In other words, most borrowers will have seen the same NOTE rate (aka “contract rate,” which is simply the interest rate applied to your loan balance). Contract rates are typically offered in eighth point increments (.125, .25, .375, etc). “Effective rates,” on the other hand, take the upfront costs into consideration. These costs allow for more of a fine-tuning adjustment when compared to an eighth of a percentage point in contract rate. For instance, on a $200k loan, it would take $1200-1600 in additional closing…(read more)

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Source: Mortgage News Daily

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