March 9th, 2010 1:49 PM by Eric Fang
Q: My Loan amount is 400k, value around 550k.Do you think 4.75% rate is a realistic in near future for 30 yr fixed(for no closing cost at all)?
A: The current market rate is 4.875% for no closing cost.Though there is only 0.125% difference, there is still a big gap between 4.875% and 4.750%.
But is it possible? Yes, it's possible under certain conditions.1)If the bond traders narrows the spreads between 15 yr fixed and 30 yr fixed. Usually 30 yr fixed rate is 0.5% higher than 15 yr fixed. Now it's 0.625% higher.
2)If the lenders are 'willing" to lower the profit margin on 30 yr fixed programs.
3)If the overall market rates are lower on some bad economy news.
4)It's possible if your LTV<=60%.
It's also on the following link now.