Do you believe mortgage rates will drop any further in the next 6-12 mos?

Looking at doing a conversion to bring down my rate (+ pay 2 points to bring that pymt down as well) ....and wondered if anyone has any predictions?


Do you feel the rates have dropped as far as they will for a while? Do you feel they'll be on the rise again shortly?Do you believe mortgage rates will drop any further in the next 6-12 mos?
I am thinking we will see a drop. The R word is looming large. This might depress rates either naturally or artificially (fed).





I am not a huge points fan. What is your current rate? What is the loan amount. How long will you live there? Why a 15? Is having the house PAID OFF in 15 part of your long term financial plan?





If you are rolling points into the loan, the break even is about 6 years.





Please DO NOT listen to ';Over 15 years'; or over ';30 years you save..$XXX.'; speils. NO WAY you are holding the same loan on the same property for that long. Try to think in 10 year chunks of time. Even 10 years is likely longer than you will have a given loan, but it more realistic than 30.





Here is a link to a great points v no points calc...





http://www.dinkytown.com/java/MortgagePo鈥?/a>Do you believe mortgage rates will drop any further in the next 6-12 mos?
Personally I don't see them dropping further. I do not expect them to raise until next year, and no major jumps prior to the election. If we stay republican there should be no major jumps, but if we go democrat they will raise the interest rate high and quickly.
I don't believe mortgage rates will drop any further. However if I knew for sure, I'd have my own island in the Caribbean!
who knows ?
No one knows for sure.





You'll have to see if it is in your best interest to pay the 2 points. How long do you plan to stay in the house?





Maybe a 30 year loan will give you lower payments without the points. You can always pay extra toward the principal each month to pay off in 15 years.
Wow! If you know someone who knows the answer to that question, honestly, make him/her your best friend and invest in real estate.


I would say no though. I live in Indiana and we are currently the highest foreclosure state in the nation. Having said that, you would think that there would be no new construction. On the contrary, houses are going up like clockwork. This is very bad for our economy. Which means somewhere something has to give..Unfortunatley, I believe it will be in the rates..


good luck