Comments on: Interest rates drop back below 5 percent; Home loan applications decrease http://realestateconsumernews.com/financing/interest-rates-drop-back-below-5-percent-home-loan-applications-decrease/ Real Estate Consumer News is a one stop source for consumers to get the information they want and need concerning real estate Fri, 12 Mar 2010 14:53:07 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Dennis Norman http://realestateconsumernews.com/financing/interest-rates-drop-back-below-5-percent-home-loan-applications-decrease/comment-page-1/#comment-1117 Dennis Norman Thu, 05 Nov 2009 14:08:15 +0000 http://realestateconsumernews.com/?p=1756#comment-1117 Gordon, The information that comes out from the MBA is based on national averages. Locally rates vary, sometimes significantly, and it appears this is what you are finding in Ohio. As for your comparison between the bank rate and fees and brokerage rates and fees it is hard to determine which one is the best deal without knowing loan amount and the length of time you plan to stay in the home. However, assuming a loan amount of $250,000 the difference in payment between the two rates is about $27 per month ($1,350 vs $1,323)..there is an additional $2,250 in fees to get the lower rate, therefore it would take you 7 years of the lower payments just to make up for the additional cost of the loan....If it were me, unless I was sure I was staying put in the house for a long, long time, then I might opt for the lower rate, but If not I would save the cash and take the higher rate. Good luck Dennis Gordon,
The information that comes out from the MBA is based on national averages. Locally rates vary, sometimes significantly, and it appears this is what you are finding in Ohio.

As for your comparison between the bank rate and fees and brokerage rates and fees it is hard to determine which one is the best deal without knowing loan amount and the length of time you plan to stay in the home. However, assuming a loan amount of $250,000 the difference in payment between the two rates is about $27 per month ($1,350 vs $1,323)..there is an additional $2,250 in fees to get the lower rate, therefore it would take you 7 years of the lower payments just to make up for the additional cost of the loan….If it were me, unless I was sure I was staying put in the house for a long, long time, then I might opt for the lower rate, but If not I would save the cash and take the higher rate.

Good luck
Dennis

]]> By: Gordon http://realestateconsumernews.com/financing/interest-rates-drop-back-below-5-percent-home-loan-applications-decrease/comment-page-1/#comment-1111 Gordon Thu, 05 Nov 2009 06:01:05 +0000 http://realestateconsumernews.com/?p=1756#comment-1111 Can you please advise me as to where in Ohio the interest rate is below 5.0%? After calling around today to banks and mortgage brokers heres what I found. Banks avg rate 5.125%, with the average closing costs over $2200 Brokerage firms 4.875% average closing costs $4450. More than double the banks for only .25% better rate. It does not seem to make since to me to go with the lower rate and higher cost. Can you please advise me as to where in Ohio the interest rate is below 5.0%?
After calling around today to banks and mortgage brokers heres what I found.
Banks avg rate 5.125%, with the average closing costs over $2200
Brokerage firms 4.875% average closing costs $4450. More than double the banks for only .25% better rate.
It does not seem to make since to me to go with the lower rate and higher cost.

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