Mortgage Rates Fall for Week of November 23

Home buyers and those seeking to refinance existing mortgage loans can find low mortgage rates near the 5% benchmark. Although average rates may not apply to everyone, today's overall mortgage rates are close to record lows for housing finance rates. When shopping for mortgage loans, it's important to understand that individual criteria also impact the mortgage rates offered:

• Credit scores. Unless you have optimum credit scores above 750, and in some cases higher, you may not qualify for posted "average" rates.
• Income and assets. You can have great credit, but if you have limited income and/or assets, mortgage lenders may perceive this as a risk.
• Debt. Lenders calculate two ratios when approving mortgage loans. First, they divide the amount of your housing payment, including principal and interest, taxes, and insurance (PITI) by the amount of your monthly gross income. This is called the "front-end ratio." The second ratio is the total of your fixed monthly obligations, including your housing payment, divided by your gross monthly income--this is called the "back-end ratio." To qualify for conventional mortgage loans, your front-end ratio should not exceed 28%, and your back-end ratio should not exceed 36%.Borrowers with higher debt levels may qualify for FHA loans, which permit front-end ratios of 29% and back-end ratios as high as 41%. FHA also allows low down payments, which can especially help first-time buyers take advantage of current low mortgage rates, provided they meet FHA loan requirements.

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