Mortgage Rates Fall for Week of June 29

Mortgage rates trended lower this week with the average rate for a 30 year fixed rate mortgage (FRM) at 5.32%, down from last week's average of 5.42%. Rates for a 15 year FRM ticked upward from last week's 4.92% to 4.94% this week. Nevertheless, rates near 5.00% present an outstanding opportunity . If you want to pay your mortgage off faster, and don't mind paying higher monthly payments, compare your current rate and repayment term to a 15 year mortgage at today's rates. The potential savings on interest may surprise you. Getting mortgage quotes from several lenders can help you find the best deal while ensuring that you find a mortgage loan that matches your current financial circumstances and future plans.

Five year ARM: Offers Lowest Initial Rates

This week's average rate for a 5 year adjustable rate mortgage (ARM) averaged 4.88% down from last week's 4.99% average. If you're buying a home you plan to keep for a short time, an ARM can provide the benefit of the initial low interest rate. If you sell prior to the expiration of the initial low rate, you won't have to worry about how your mortgage rates may adjust when it's time for them to reset. Here are a couple of things to keep in mind if you're considering an ARM :

• Prepayment penalties: Make sure any mortgage you're considering does not require a prepayment penalty unless you are getting a significant rate reduction in exchange--and you don't expect to leave your home before the penalty kicks in. Otherwise, this can negate or reduce the benefit of low introductory rates.
• While they have pretty much disappeare from the market, there are some riskier loans with exotic terms out there. Current mortgage rates won't matter if you find out later that unpaid interest has been added to your mortgage balance, or that your interest rate can jump a few points when the initial rate expires.

It's usually a good idea to avoid mortgage features such as interest-only payments and negative amortization that can cause your mortgage balance to remain the same or increase. Whatever your mortgage needs, comparing mortgage quotes assists in finding the mortgage you need now and can live with later.

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