Mortgage Rates Fall for Week of June 15
Home buyers and homeowners who've held out for lower rates got their wish during the week of June 15. Rates for a 30 year fixed rate mortgage (FRM) averaged 5.47%, down from 5.70% last week. Borrowers interested in a 15 year FRM could get rates averaging less than 5% at 4.96%. Those looking for the lowest home loan and refinance rates could take advantage of 5/1 ARM rates at 4.75%, 12 basis points lower than last week's average rate of 4.87%.
Home Loans: More Accessible as Rates and Home Prices Fall
If you're looking for a new home, there's more good news. Fortune magazine reports that housing prices are expected to continue falling at least until mid 2010. Although this could prompt you to wait until home prices bottom out, there's no telling where rates for home loans will be by then. If you're ready to buy a home now, taking advantage of current mortgage rates may help you buy a larger home or getting lower monthly mortgage payments. If you're a first time buyer with little cash or dicey credit, taking time to save toward a down payment and closing costs and paying down debt can help you improve your credit scores and potentially qualify for better mortgage rates.
Refinance Rates Attractive
if you have a high fixed mortgage rate, or an ARM resetting to a higher rate, this could be a great time to lower monthly payments or stabilize your mortgage payment amount. Refinancing to an FRM can also eliminate exotic mortgage terms including negative amortization and interest only payments. If you have enough home equity, it may also be possible to take cash out for debt consolidation or home improvement. Lenders typically require no more than an 80% loan to value ratio including the refinancing amount. This means that you can refinance for up to 80% of your home's current appraised value. You can use mortgage calculator tools to compare mortgage and refinance terms and estimated costs.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
