Posted on: 15th Jun, 2009 10:14 am
I have a mortgage that is set to adjust and the new rate will be the index rate +3.75%. What will my new rate be?
I have a mortgage that is set to adjust on Feb 15, 2009. The new rate will be the index rate +3.75%. Index rate shall mean the rate of interest set and announced by the Federal Reserve Board as the weekly average yield onUnited States Treasury Securities adjusted to a constant maturity of 5 years. What will my new rate be?
I have a mortgage that is set to adjust on Feb 15, 2009. The new rate will be the index rate +3.75%. Index rate shall mean the rate of interest set and announced by the Federal Reserve Board as the weekly average yield onUnited States Treasury Securities adjusted to a constant maturity of 5 years. What will my new rate be?
sunil87020
it will depend on the index rate at the time you lock your rates
good luck
it will depend on the index rate at the time you lock your rates
good luck
The Five year treasury rate is currently at 1.54% (a historically VERY low base rate for your index rate) - so your rate is 5.29%. That is a VERY low rate, by historical mortgage standards.
I would guess that you are on a five year ARM, that is adjusting for the first time. You could try to apply for a 30 year fixed, which is also at a historic lows - but you have a very good and low rate.
Currently, the average interest rate for a new 30 year fixed-rate loan is 5.5%, and the average FICO credit score is 723. So, if your credit score is better than 720, you should expect to qualify for an interest rate of around 5.5% on a 30 year fixed rate mortgage.
I would guess that you are on a five year ARM, that is adjusting for the first time. You could try to apply for a 30 year fixed, which is also at a historic lows - but you have a very good and low rate.
Currently, the average interest rate for a new 30 year fixed-rate loan is 5.5%, and the average FICO credit score is 723. So, if your credit score is better than 720, you should expect to qualify for an interest rate of around 5.5% on a 30 year fixed rate mortgage.