Beyond Know How

Adjustable-rate mortgages sometimes come with an additional option to convert over to a fixed-rate mortgage within a certain time period, usually that is before the first five years. This is a great option to exercise if you see that the interest rates are on the rise and your initial period is closer than farther. However, interest rates are going to go up and down throughout the years, so sitting through the higher time period may be worth it because it will eventually lower. Though there are always exceptions and maybe a fixed-rate mortgage is something that you want instead to ensure a consistent monthly payment so that you can plan your finances accordingly. This conversion usually requires a fee and minimal paperwork, but the rate is automatically going to be higher than the market rate because of the “conversion” as opposed to starting with a fixed-rate mortgage. Visit Portland Mortgage Rates for mortgage tips and videos.

photo credit: stefani.drew

Well, after about two weeks of nothing but worsening of mortgage rates, the past handful of days has seen some very welcome relief.  In fact, we have seen 5 days straight (at least so far today seems to be continuing the trend) of price improvements.  Of course, this has come at the expense of the stock market, which is pretty normal.  With stocks and bonds (i.e. mortgage bonds which is what is bought, sold and traded to create mortgage interest rates) competing for the same money, when one goes up it is at the expense of the other.  So like so many things in life, the improvement we’ve seen in mortgage rates the past few days is all relative.  If you have your money in the stock market, you may not be too happy with what has been going on.  If you’re about to close on a mortgage loan… good for you!