What to look for in comparing mortgage rates in Sonoma County.
The Federal Reserve came out last week discussing in the media how they intend to purchase mortgage bonds moving forward in order to keep borrowing costs for consumers comparing mortgages down. If you are comparing mortgage rates in Sonoma County be aware that interest rates are volatile so locking in the best possible rate in this environment makes sense as long as you’re saving money and can justify the numbers. Run payment scenarios with our Sonoma County Mortgage Payment Calculator.
Up until last week, mortgage rates have been quite low. In seeking out the best possible Sonoma County Mortgage rate be mindful of the current market. The stock market is rallying from a liquidation of mortgage bonds which is causing mortgage rates to increase because money is being transferred from the stock market to the bond market.
What does this mean for comparing mortgage rates in Sonoma County?
It means at least for now that investors of mortgage bonds see the Federal Reserve’s action as a risk. The government is pouring money into bonds thereby creating artificial investor safety. Consumers comparing mortgage rates in Sonoma County over the last couple of days have seen a rise in mortgage rates with the best mortgage rates now increasing by.375 . On a 300,000 home mortgage loan this translates to an extra $66 per month over 30 years. That extra $66 per month on your Sonoma County home loan will cost thousands of dollars in extra interest just because of the Fed’s recent stance on the dollar.
The Federal Reserve intends to keep borrowing costs low for consumers when taking out a Sonoma County home loan. The government also encourages folks to compare mortgage rates when shopping for a mortgage. As most consumers continue to compare mortgage rates hard actual rates continue to gyrate in large swing’s. The best possible solution for consumers in this environment comparing rates is to lock in their Sonoma County home loan as soon as possible. Sonoma County mortgage rates based on all of the economic data readily available are poised to rise. Everyone wants to get the best possible Sonoma County home loan rate and comparing mortgages in order to do that makes sense. The best possible advice would be to order the appraisal, lock-in depending on equity get the loan approved with mortgage underwriting. Because Sonoma County mortgage rates have been so low the last several weeks most mortgage banks are backed up with underwriting loans and close of escrow will typically take a minimum of 30 days sometimes longer depending on receiving borrower documentation.
So what does the overall future projection for comparing mortgage rates in Sonoma County look like?
Consumers comparing mortgage rates should be aware that taking action on a mortgage now is important due the economic climate. Borrowers who wait for the absolute lowest possible interest rate for their Sonoma County mortgage loan are going to be waiting for a long time due to the fact the Federal Reserve is going to be buying mortgage bonds through mid 2011. Make no mistake the government involvement in the purchasing of home mortgage loans for the overall economy is good. What’s usually good for the economy is not so good for the bond market which keeps Sonoma County mortgage rates low for consumers comparison shopping. If you are thinking about getting a Sonoma County home loan, desire the best mortgage rate and are presently comparing mortgage rates give me a phone call. As a local mortgage banker I can shop your loan through many different Sonoma County Lenders. Call me Scott Sheldon to begin Comparing Mortgage Rates In Sonoma County.