Mortgage Rates Fall for Week of June 14

Mortgage rates typically rise as demand increases for home loans during the busy spring and summer buying season, but interest rates provided great news for mortgage loan shoppers this week.

How low can mortgage rates go? Home buyers and homeowners looking to refinance received great news this week as HSH Associates reports average combined mortgage rates falling across the board. Mortgage rates for 30-year fixed rate mortgage (FRM) loans fell by 4 basis points from 5.15% to 5.11%. Average rates for a 15-year FRM fell by 5 basis points from 4.61% to 4.56%. Average combined mortgage rates for 5/1 adjustable-rate mortgage (ARM) loans dropped by 6 basis point from 4.23% to 4.17%. The hybrid ARM represents an great opportunity for first-time buyers or anyone looking for low monthly payments.

Refinancing Your Mortgage: Now Is the Time

Current mortgage rates are offering unprecedented opportunities for refinancing. Did you buy your home with an "exotic" mortgage, or an ARM loan with very high limits on how much rates can adjust? Current mortgage rates are making fixed-rate mortgages more affordable than ever. You can trade in unpredictable rate changes and payment amounts for stable principal and interest payments and a fully amortized mortgage loan.

Here are more potential benefits of refinancing based on today's mortgage rates:

• Added borrowing power: Provided you have enough home equity, you may be able to qualify for a cash-out mortgage to pay off high-cost consumer debt or to remodel your home.
• Paying off your mortgage faster: Lower mortgage rates make it easier to qualify for a shorter mortgage term, because even the higher monthly payments that come with a quicker payoff might still be within the lender's qualification guidelines. Refinancing to a 15-year mortgage at a low rate could save thousands of dollars in total interest payments.

Consult with your financial adviser to learn how refinancing can benefit your individual financial circumstances. Mortgage rates are widely expected to go up from today's lows, so lock in your refinance rate soon to get your best mortgage rate.

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