Keep Your Eye Focused on Treasury Bond Rates To Adjust Your Current Mortgage Rates

Mortgage rates typically are based off the current rates of treasury bonds. Most lenders set their long term mortgage rates in line with 10 and 30-year treasury rates. The reason that they do this is quite simple. Treasury rates are the rates that are used as an index to represent what the future value of money will be by the secondary market and investors. The Federal Reserve Bank will issue these bonds along with an interest rate that it will pay to holder of the bond once it matures. The market, in reflecting economic and inflationary predictions, adjusts the yields. Mortgage rates are then set according to the yields. If the market expects that thing in the future are going to be good with low inflation then the mortgage rates will be lower. If the market forecasts higher inflation then the mortgage interest rates will also rise.

This is something that is very important to look upon by consumers because it will directly affect their bank account. In most cases, a home is the single largest purchase that someone will make in their lifetime. Home loans are usually very high in their term, sometimes as long as 30 years. The amount of interest paid over the the life of the loan can be staggering even for lower cost homes. For example, if you finance a $100,000 home for a term of 30 years at an 8% interest rate, the amount of money you will spend on interest alone will be $164,153.60 giving you a monthly payment of $733.76. If you could lower the interest on your mortgage by just 1% you would save $24,645.60 over the term of the loan and would pay $665.30 saving you $68.46 each month. As mortgage rates rise you want to lock in your interest rate to protect you against future increases however if the rates are falling then you may consider refinancing to save you more money.

Some people ask when is the best time to refinance your home because there is a cost to refinancing. Typical costs include appraisal fees, document preparation fees and up front points to pay. It is not always in your best interest to refinance for small rate changes. So the question is how much more will the market continue to move lower and what would be the best time to consider refinancing? This goes back to keeping an eye on treasury bond rates. When you see long term treasury bond rates start to take a dive after long periods of being high then it's time to get focused on the current mortgage rates. Once the stop diving then you may consider refinancing to lock in a better rate for your mortgage allowing you to put more money back in to your pocket!

Shannon Moran is the owner of http://www.the-best-in-loans.com which provides great information on all types of loans such as automobile loans, mortgages and student loans. There is also information on finding a great mortgage company in reference to the article above.

Publishing Rights: You may republish the above article for use on your website, in your newletter or ebook as long as you agree to leave the article, author's signature and all links completely intact.

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.publicbroadcasting.net/wbfo/news.newsmain%3Faction%3Darticle%26ARTICLE_ID%3D1383875%26sectionID%3D1cid=0ei=ZrDrSObXIaCQ6AOt27T5CAusg=AFQjCNEXIdn7XVsGiXCOp1z_Rf_FT93kFgHomeowners Pressured to bRefinance/b/abrfont size=-1font color=#6f6f6fWBFO,nbsp;NYnbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1The bmortgage/b crisis is bringing opportunity for some lenders that hope to benefit from troubled consumers. And not all those marketing efforts are in the b.../b/font/div/font/td/tr/table
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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/mortgage-loan-applicants-welcomed-family/story.aspx%3Fguid%3D%257B9202D88B-6F34-453F-AC9F-55CFBBBDCF69%257D%26dist%3Dhpprcid=1254808303ei=ZrDrSObXIaCQ6AOt27T5CAusg=AFQjCNFE0uZLn99fxBY2BtMnEi14Nmx-QgbMortgage/b Loan Applicants Are Welcomed at Family First Federal b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobrOct 6, 2008/nobr/fontbrfont size=-1The credit union provides various bmortgage/b services including construction loans, bmortgage refinance/b and home equity options. Anyone who lives, works, b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kippreport.com/kipp/arif-alharmi/arif-alharmi/cid=0ei=ZrDrSObXIaCQ6AOt27T5CAusg=AFQjCNFUEO7uw-fYtu1yKLCpwoPqIvSyjQMarwan Bin Ghalita/abrfont size=-1font color=#6f6f6fKipp Report,nbsp;United Arab Emiratesnbsp;-/font nobr20 hours ago/nobr/fontbrfont size=-1Last year, Amlak announced plans to become a founding shareholder of the Egyptian bMortgage Refinance/b Company (EMRC) through Amlak Egypt. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/story/0,25197,24462758-23634,00.htmlcid=1255131915ei=ZrDrSObXIaCQ6AOt27T5CAusg=AFQjCNEtc_jT91tHmcuv4rF1pRPoOk_GuAInterest-rate sensitive stocks/abrfont size=-1font color=#6f6f6fThe Australian,nbsp;Australianbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1As always, there#39;s a reason for the caution: SAR has to brefinance/b $US220 million ($300.6 million) of debt used to fund its Jembayan acquisition last year. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.wsbtv.com/money/17506067/detail.htmlcid=0ei=ZrDrSObXIaCQ6AOt27T5CAusg=AFQjCNFLIZQKbCZi0V4wftriL5EWvNnFFAViewer Stories: Housing Market Victims/abrfont size=-1font color=#6f6f6fWSBtv.com,nbsp;GAnbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1Well to make a long story short, two months ago we looked to brefinance/b again and start making regular payments, only to find that the bmortgage/b company added b.../b/font/div/font/td/tr/table
mortgage refinance - Google News


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