Mortgage Rates Fall for Week of January 11
HSH Associates, which tracks weekly street rates for residential mortgage loans, reports falling mortgage rates across the board this week. The rate for 30-year fixed-rate mortgage (FRM) loans fell 9 basis points, from last week's 5.55% to 5.46%, while the rate for a 15-year FRM fell 11 basis points, from 4.97% to 4.86%. Borrowers looking for even lower initial mortgage rates can take advantage of 5/1 ARM rates, which fell by 13 basis points from last week's 4.81% to 4.68%.
Favorable mortgage rates are providing home buyers planning to take advantage of the federal tax credit with additional incentive for shopping with mortgage lenders. Eligibility rules for the federal home buyer tax credit require that buyers sign a purchase contract no later than April 30, 2010, and close by the program's current end date of June 30, 2010.
Lower Mortgage Rates Increase Home Loan Options
Falling mortgage rates provide potential savings and borrowing flexibility. At lower rates, those purchasing a home can either target lower mortgage payments or increase buying power by qualifying for a larger mortgage balance. Individual scenarios depend on more than mortgage rates, however, as rates and mortgage lender charges vary depending on factors including down payment amount, credit standing, and employment history.
Homeowners seeking lower mortgage rates through refinancing may now qualify for significant reductions in mortgage rates and monthly principal and interest (P&I) payments. Reducing your mortgage rate and payments can help provide additional financial security during uncertain times. Putting the savings toward padding your emergency fund or reducing high-cost consumer debt can help reduce your risk when facing financial challenges.
When shopping for the best mortgage rates, remember to evaluate and compare all aspects of your mortgage quotes. Lender fees, points, and closing costs all contribute to the overall cost of mortgage loans.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
