Mortgage Rates Fall for Week of August 10

After steady increases in recent weeks, mortgage rates finally fell. The average rate for a 30 year fixed rate (FRM) was 5.38 percent, while 15 year FRM rates averaged 4.83%. For borrowers waiting for even lower mortgage rates, 5/1 ARM rates averaged 4.56 percent compared to last week's 4.61%.

Low Mortgage Rates: Buy a Larger Home, or Get Lower Payments

In addition to saving money, lower mortgage rates are helpful to home buyers and homeowners in several ways. If you're buying a home, lower mortgage rates can help you qualify for a larger mortgage. If you're refinancing your current mortgage, you can do so for less money depending on variables including credit scores and the amount of home equity you have.

Refinance Options Help with Home and Budget Improvements

This is a great time to take advantage of low mortgage rates for reducing your monthly payments. Many homeowners also refinance to get cash for making home improvements, or for consolidating high cost credit card debt. When calculating potential savings on a refinance transaction, remember to consider closing costs and points as well as comparing interest rates. Depending on how long you plan to keep your home after refinancing, you can save by refinancing from a higher rate to a lower rate or by taking extra cash for consolidating high cost credit card debt.

Mortgage Rates, Credit Scores, and Home Equity

Approval for mortgage loans is based on more than published interest rates. Credit scores play a big role in determining what mortgage rates you can get. If your credit score is 740 or above, you can likely qualify for the lowest mortgage rates. Home buyers who make a down payment of 20% or more and homeowners with more than 20% equity after refinancing are in a good position to shop rates. Don't let the home you want slip away by focusing only on current mortgage rates.

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