Mortgage Rates Fall for Week of January 4
Shopping for mortgage rates this week brings slightly better news, as average rates for a 30-year FRM dipped slightly from last week's 5.14% to 5.09%. Average mortgage rates for a 15-year FRM followed suit and fell by 4 basis points from 4.54% to 4.50%, while mortgage rates for a 5/1 ARM remained steady at 4.44%.
Buying or Refinancing? Get Great Mortgage Rates Today
Mortgage rates remain comparatively low and are providing affordable access to home loans, especially for those eligible for the federal home buyer tax credit. Home prices also remain low. Combining low mortgage rates, reasonable home prices, and the tax credit can offer you a jump start in finding and financing your next home. Finding the best mortgage rate requires research and shopping mortgage quotes. It's a good idea to know your credit scores through the three major credit bureaus, because published mortgage rates are typically available only to borrowers with excellent credit.
Comparing Mortgage Quotes: Understanding the Basics
Mortgage quotes typically itemize the loan amount, down payment, interest rate, lender charges, and estimated closing costs, which can include the closing agent's fee, title documents, recording fees, appraisal and inspection fees, and various credits and charges to buyer and seller for repairs, property taxes, and hazard insurance. Compare closing costs carefully, as some items may be negotiable. Question any items you don't understand, and don't hesitate to negotiate. Your real estate agent can help explain which charges are negotiable. Check the annual percentage rate (APR) for each mortgage quote, as this represents the cost of the mortgage loan including interest rate and closing costs. If you're comparing two mortgage loans of identical amount and interest rate, the difference in APRs represents the difference in closing costs. This is a cue to closely evaluate estimated costs and to negotiate where possible.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
