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Rates Staying Sideways Ahead of Big-Ticket Events

Mortgage rates  were sideways to slightly higher today as financial markets returned for the final 2 days of the holiday-shortened week.  Trade war anxiety is front and center for both stocks and bonds (which dictate rates). 

Fear of negative economic fallout surrounding trade policies is keeping stocks in a holding pattern just off their recent highs.  Tomorrow, investors will also have to contend with an important scheduled event in the form of the big jobs report at 8:30am ET.  While the jobs data is always capable of causing volatility for rates, it will be balanced against trade-related developments due to the scheduled implementation of new tariffs on China at midnight. 

For instance, if trade-related fears are causing markets to panic, that panic could easily help bonds more than a strong jobs number would hurt .  That's just one potential combination, however.  If the market reaction to trade-related developments is in line with the reaction to the jobs report, that could be the thing that begins pushing stocks and rates out of their recently narrow ranges, for better or worse.

How are mortgage discount points calculated?

I know they are based on 1% of the loan. However, are the calculated on the base loan or with the closing costs rolled in? For example, your base loan is $320,000 with closing costs of $3,000 that you are rolling into the loan.

If you are using $320,000 toward the home, and rolling $3000 worth of closing costs into the loan, then your loan is $323,000.

All of these calculations are based on the loan value, which is $323,000.