Mortgage rates fall for week of September 13, 2010
Mortgage rates resume their decline as would-be home buyers and reluctant sellers bide their time until the economy improves. Homeowners continue to find it difficult to refinance mortgages on homes that have lost value.
We're going to stop saying mortgage rates have hit bottom -- evidently we haven't reached bottom yet. HSH Associates reports that average combined mortgage rates for the week of September 13 fell across the board.
Mortgage rates for a 30-year fixed rate mortgage fell by three basis points from 4.78 percent to 4.75 percent. Rates for a 15-year FRM fell from 4.27 percent to 4.21 percent, which presents a great opportunity for those wanting to pay off their loans sooner and save on finance charges too. First time buyers, or anyone seeking a low initial mortgage payment, can benefit from a 5/1 adjustable rate mortgage with average combined rates falling from last week's 3.75 percent to 3.72 percent.
First time buyer? Check out low down payment mortgage options and assistance
If you're ready to buy, but you don't have a lot of money saved for your down payment and closing costs, you may qualify for an FHA loan or a state or local buyer assistance program. Some professions, including firefighters, law enforcement officials, and K-12 teachers may qualify for low cost programs. HUD offers this opportunity through its good neighbor next door program.
While buying a home is a major goal for many, it's important not to use low mortgage rates or home prices as an excuse to jump in before you're truly able to take on the commitment. You can determine your readiness for buying a home by assessing your finances and credit scores, and by using a free mortgage pre-qualification calculator. If you're expecting to move within a couple of years, you may not break even on closing costs required for buying a home.
Low home prices are paired with rock-bottom mortgage rates while unemployment rates remain high. No one knows what the economy will do next, but if you're in a position to buy or refinance your existing mortgage loan, you (probably) can't do much better than the past week's low mortgage rates.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
