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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127237  
Subject: Re: mortgage rate versus bond rates Date: 4/11/2001 8:24 PM
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Hi ali,

<<Where can one find rates for a jumbo mortgage?>>
Good question.... I don't recall seeing anywhere that posts their Jumbos online, let alone a market overview-average like Bloomberg's. Probably your best bet would be to get yourself a trustworthy, experienced broker (I know... everyone's yawning at me again...), and then do a spot check once in a while by calling another bank or broker and specifically asking "What is the most current Jumbo rate for a (fill in the program blank... 30 year fixed, 15 year, 5/1 arm, etc) AT PAR"

"At Par" *should* keep your shopped responses relatively cosistent. "PAR" is the interest rate at which the lenders contribute no funds to the broker, and it costs you no funds to access that specific interest rate. If you had access to real wholesale rates you'll find that what the public actually locks and closes at is usually significantly above PAR, unless they have an open disclosure communication with their broker or banker.

<<Also, my real estate agent told me that one should never lock in a loan rate on a Monday or a Friday, b/c the rates are generally more volatile and historically higher than T through Th. Is there any truth to this?>>
Ya know... I've heard this endlessly as well... and I really haven't observed it to be numerically the case. Oh, have no mistake about it, I *DO* watch relentlessly to see if I can slice an 1/8 here or there in anyway I can... but the weekday argument just hasn't panned out.

I think it's more likely homespun superstition... kinda like the theories about the stock market rising or falling in correlation to whether the NFC or the AFC wins the Super Bowl.

(Now... the stock market correlating to women's fashions... bull markets when we have sexy short skirts, and bear markets during conservative styles... now THAT I can actually show to be accurate, AND explain why... but that's a whole 'nuther string on a whole 'nuther board!)

Best luck,
Dave Donhoff
Lic. Mortgage Broker
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