Mortgage rates rise for week of September 6, 2010
We've been sitting on pins and needles for weeks, wondering how long record low mortgage rates could last. The bad news: mortgage rates rose last week. The good news: not by much.
It finally happened: HSH Associates reports that average combined mortgage rates rose last week, with 30-year FRM rates ticking upward by two basis points to 4.78 percent, and 15-year FRM rates rising three basis points to 4.27 percent. Those seeking the lowest mortgage rates can still benefit from a 5/1 ARM loan with an average combined rate of 3.75 percent, up two basis points from last week's rate. Despite the overall rise, rates are still very attractive to almost any prospective home buyer or anyone looking to refinance.
Mortgage loans: Shopping for more than the lowest mortgage rate
The lower your mortgage rates, the lower your monthly payments will be, and the faster you can repay your mortgage loan. Getting the lowest payment can be a high priority for moderate-income borrowers, but to find your best deal on a home loan it's essential to shop around and negotiate mortgage costs. Checking and comparing the annual percentage rate (APR) on mortgage quotes is an easy method for determining how much a mortgage actually costs.
The APR includes the mortgage interest rate and other fees and costs expressed as an annual percentage of your mortgage loan amount. If you want to borrow $200,000 and the APR is 6 percent, your finance charges would be about $12,000 each year. (The actual APR will vary depending on your loan balance; this example shows how the calculation works in one instance.)
Mortgage loan APR effective for evaluating mortgage quotes
Federal law requires the APR to be shown on mortgage quotes; from this information, you can quickly estimate how much each mortgage loan is expected to cost. It's important to understand that estimated costs such as those provided in initial mortgage quotes can change based on circumstances, negotiations, market, and the actual costs of items included in your actual mortgage.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
