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Mortgage Trend - requires Macromedia Flash Player
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Mortgage Trend Mortgage Trend Index … What is it? The Mortgage Trend Index is an accurate way to track trends in mortgage rates by quickly viewing a number and its trend line. If the number and trend line are decreasing from one day to the next, mortgage rates are dropping. Conversely, if the index number is higher than the previous day and the line has an upward trend, mortgage rates are increasing. The index works for mortgage trends like the Dow Jones Industrial Average works for stock trends. Just as changes up or down in the Dow Jones index can lead you to examine your stock portfolio, changes in the Mortgage Trend Index can alert you to review your current mortgage plan. The index is calculated each business morning by using a blended average of key pricing figures from mortgage programs offered by the nation’s top lending institutions. The index posted here each day assumes a 30-year fixed loan term with no discount points and a $150,000 loan amount on a single family home with an estimated Loan-to-Value of 80% and a 45-day rate lock. The index also assumes that the borrower has an excellent credit score, agrees to include taxes and insurance as part of the monthly payment, and is specific as to geographic location. With these assumptions in mind, an index of 6092 equates to a 30-year fixed rate interest rate of approximately 6.00% to 6.125%. The assumptions explained above are important when viewing the index. Today, mortgage rates are highly customized based on credit scores, property type, amount of down payment provided, loan terms, and geographic location. The combination of interest rate and loan fees that are available to you may differ from our other clients based on these factors. Therefore, an accurate quote can only be given based on detailed information about your purchase or refinance needs. Please give us a call when you are ready and we will be happy to give you a custom rate quote that fits your exact circumstances. Key Terms: Loan-to-Value - The loan amount taken on the property divided by the appraised value of the property (or purchase price) whichever is less. 45-Day Rate Lock - The number of days the rate is valid from the date of registration. Origination Fee - A fee charged by a lender for processing a loan application. Discount Points – Fees paid to a lender to lower the interest rate on your loan.
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