Anyone know a website...

[jIM_Ohio]

If someone sells there home and was upside down on the mortgage, can the money lost be deducted on tax returns as a capital loss?

[Gruntina]

I believe what she meant was that some people try to refi only to discover that due to market conditions, the value of their home has fallen and they don't have enough equity. In some cases, folks who bought with little or nothing down end up owing more than the house is worth so now they have a mortgage they can't afford but they can't refinance even though rates have dropped and they can't sell because they are upside down on the loan. That is what is leading to a lot of foreclosures.

disneysteve - thanks for explaining and you are correct in interpreting what I was trying to say.

[jIM_Ohio]

which shows interest rates on 30 year and 15 year fixed mortgages?

I have gone to several websites and they only ask for information before quoting the rates.

I want to do a proxy today to see what rates are (I am guessing about 5.5% for 30 year fixed), then will bump this thread up in about 3 months when I expect rates to approach 5%.

Usually takes a few months for a fed rate cut to permeate mortgage rate market.

My goal is 30 year fixed under 4%.

edit- found one site

Mortgage Interest Rates

Which shows 5.375% to 5.86% on Tues 1/22.

summary bump:

1/22/2008 rates were 5.375% to 5.86%
2/4/2008 rates are 5.86% 30 year fixed

Fed dropped rate .5% between two dates, and mortgage rates have not moved much (yet).

[sweeps]

Fed dropped rate .5% between two dates, and mortgage rates have not moved much (yet).

As discussed in another thread, there's no guarantee that mortgage rates will move down from here. Inflation (or more specifically the expectation of future inflation) is the enemy of long term bond investors. With the Fed aggressively cutting short term rates, the expectations of inflation go way up. People are less willing to buy long term bonds, prices go down, and interest rates go up.

[jIM_Ohio]

As discussed in another thread, there's no guarantee that mortgage rates will move down from here. Inflation (or more specifically the expectation of future inflation) is the enemy of long term bond investors. With the Fed aggressively cutting short term rates, the expectations of inflation go way up. People are less willing to buy long term bonds, prices go down, and interest rates go up.

I know, I did a two week checkup. And will probably bump this again in 2-4 weeks to see if rates start dropping sooner or later.

[jIM_Ohio]

25 days later I get this e-mail from someone I was looking to refinance with.

Market Conditions

Mortgage rates are tied to the 10 Year Treasury rate, not the Fed Funds Rate like most people believe. The difference (or "spread") between the 10 Year Treasury and 30 year fixed rates is increasing. In fact, at almost 3%, the spread is the highest it has been since the 90's. Additionally, the interest rate on the 10 Year Treasury is near its all time low and likely will not remain there much longer. Therefore: If the 10 Year Treasury rises, which is likely, and the spread remains high, 30 year fixed rates could soar well over 8%.

[jc3900]

As discussed in another thread, there's no guarantee that mortgage rates will move down from here. Inflation (or more specifically the expectation of future inflation) is the enemy of long term bond investors. With the Fed aggressively cutting short term rates, the expectations of inflation go way up. People are less willing to buy long term bonds, prices go down, and interest rates go up.

Yeah I would definately agree. The Fed cutting interest rates won't make mortgage rates go down like they did in 2003. I actually just heard that the CEO of thornburg mortgage say that rates on mortgages are likely to go up. This is probably a de-leveraging process due to the dumb lending that happened during the real estate bubble and also there is some fear of high inflation. Don't take my opinion for anything, though, as I am 17 and have TONS to learn and a lot to get wrong.

Hey jIM Ohio: Do you think that the 10 year treasury rate is likely to bump from inflation worries that seem to have just hit wall street in the past month or so. High commodidties and large interest rate cuts seem to be a perfect blend for inflation and therefore a higher 10 year treasury?

[jIM_Ohio]

I am far from a bond investor. I own only about 3% bonds right now. I am 35 and want growth and more growth.

10 year treasury only affects my mortgage rate, other than that bonds could do whatever and should have little impact on me. I am locked in at 5.75%, so no need to jump at anything until mortgage rates approach 5% or 4.75%.

[jIM_Ohio]

I am seeing 5.75%-5.875% after rate cut yesterday. 5.25% with points.

Mortgage Interest Rates

https://www.penfed.org/productsAndRates/mortgages/firstMortgageLoans.asp

E-LOAN: Mortgage Refinance, Home Equity, Auto Loans, Savings Accounts, CDs, Line of Credit, Home Loans, Second Mortgage, No Hidden Fees
Compare Mortgage Rates | CD Rates | Home Equity Loans Mortgages Quotes Best Rate Calculator Bankrate.com
Mortgage Refinancing | Mortgage Quote | Mortgage Loan at Amerisave

[jIM_Ohio]

Seeting rates drop today... rates as low as 5% for 30 year fixed.

[sweeps]

Jim, have you pulled the trigger on your refinancing?

Mortgage rates are finally trending down... I'm trying to decide when to refinance myself.

[jIM_Ohio]

NO.

My first is 5.75 and my second is 7.5.

Because the first is 5X the size of the second, to make anything worthwhile most lenders are telling me they cannot help.

The alternate plan is to pay down the 7.5 second (50k) and that could be paid off in 5 years if we went this route and would free up another $400 to invest.

The issue is does it makes sense to free up $200 to invest now, or $400 to invest in 5-7 years? $400 wins out on most spreadsheets I run. I want to keep budget we have now (don't put any more money towards debt paydown on cars and mortgage), and just move that money around to make it work more for me.

If we can refinance both to a 5.375 or 5.25 (I have seen one website offer me this) with no PMI, that does save the 12% on the payment, but the closing costs are 10k plus for that loan (2-3 points).

I have not checked rates in last 72 hours- what are you seeing? 30 yr fixed, no points is ??

[sweeps]

5.75% right now w/ 0 pts ... so I guess that won't help you. I'm sitting at 6% myself. If I can get it to 5.5%, I would shave $100 of interest per month.

[jIM_Ohio]

bump- has anyone refinanced with a rate below 5.5%? I am seeing some web sites show the rate, but none of the people I talk to can give it to me.

[jIM_Ohio]

I see the following rates as of 2:00 pm 6/25

30 yr fixed 0 points 7.125%
15 yr fixed 0 points 6.375%

The fed is going to announce a rate decision in about 15 minutes.