What do these numbers mean - #mortgage rates this week

It is easy to be confused, or misled, with seemingly simple numbers. For example, you are saving for your child's college costs, expected be about $100,000. You are 80 percent funded with $80,000 in your account. The next year, your investment account drops 25 percent in value, to $60,000. The year following year it bounces back 25 percent. Is the value back to where you started? No, because now you have $75,000 in your account. Assume college costs are rising 8 percent per year. How close to paying for college are you? The answer: 64 percent, because you have $75,000 toward $117,000 of costs. Even though your investments rose the same percentage as they fell, you're further from your goal than before. This is the same situation faced by pension funds. This is why, if you are locking in a loan, at these historically low rates, you MUST think of your long term and short term financial plans.



The FEDERAL RESERVE took the extraordinary step of announcing that it was minded to keep the federal funds rate close to zero for at least two more years. It also restated that it was "prepared to employ" a "range of policy tools" if the economy worsens, which some think might include a third round of bond-buying.

As stock markets tumbled, the price of GOLD surged to trade above $1,800 a Troy Ounce, reaching parity with platinum prices for the first time since the end of 2008.

AMERICAN INTERNATIONAL GROUP (AIG) lodged a lawsuit against BANK OF AMERICA, claiming BofA sold it low-risk securities backed by "defective" mortgages given to low-income borrowers. It is one of the biggest claims so far to originate from the practices that led to the financial crisis; suits against other big banks are expected to follow.

30 year fixed - 4.125% + .0 points for rate
20 year fixed - 3.750% + .250 points for rate
15 year fixed - 3.250% + .250 points for rate
10 year fixed - 3.250%  + 1.125 lender credit points for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 3.00%  + 0 points for rate

FHA/VA
30 year fixed - 3.874% + .500 points for rate
5/1 ARM - 2.750 + 0 points for rate
7/1 ARM - 3.125 + .250 point for rate

Jumbo - over 625,500 - to 2,000,000 Fairfield County
30 year fixed - 4.750 % + 0  points  for rate
15 year fixed - 4.250% + 0 points for rate
5/1 ARM - 3.125 % + 0 points for rate
7/1 ARM - 3.625% + 0 points for rate
10/1 ARM - 4.250% + 0 points cost for rate