Mortgage Rates Fall for Week of January 18

HSH Associates reported further declines in reported street rates for residential mortgages last week, with average rates for a 30-year fixed-rate mortgage (FRM) loan moving from 5.46% to 5.41%. Borrowers who can afford higher mortgage payments can gain the advantage of significant savings over time with a 15-year FRM. Average mortgage rates for 15-year FRM loans decreased by two basis points, from 4.86% to 4.84%. If you're planning to pay off your mortgage quickly, a 15-year mortgage can help you stay on track while saving thousands on interest over the life of the loan.

Adjustable-Rate Mortgage Loans Provide Low Introductory Mortgage Rates

If you're looking to buy a starter home or plan to sell within a few years, a 5/1 adjustable-rate mortgage (ARM) loan offers a low initial rate for the first 5 years. This week's average rates for a 5/1 ARM was 4.65%, down three basis points from the previous week's average of 4.68%. A 5/1 ARM loan can also provide more buying power and breathing room for first-time buyers.

Is Your Mortgage Loan Behaving Badly? Affordable Rates Offer Refinance Options

Whatever your home loan needs, today's mortgage rates offer great opportunities for buying the home you want or refinancing your existing mortgage loan. Low refinance rates can be helpful for saving on monthly payments or securing additional cash for debt consolidation and home improvement projects. If your current mortgage loan still has "exotic" terms such as interest-only payments or negative amortization, refinancing to an affordable FRM or 5/1 ARM can help with stabilizing mortgage payments and your budget.

Our live database of current mortgage rates can help you find the best mortgage rates in your area.