Mortgage Rates Fall for Week of Sept 14

Good news again for current mortgage rates this week! Interest rates for 30 year fixed rate mortgage loans (FRMs) have fallen from last week's average rate of 5.26 percent to 5.16 percent. Rates for a 15 year FRM also fell slightly, from 4.67 percent to 4.65 percent on average. Average rates for av 5/1 adjustable rate mortgage (ARM) fell from 4.36 percent last week to 4.29 percent this week. If you're ready to buy a home, or if you already own a home and are considering refinancing, low rates can help you qualify for the mortgage loan you need.

Compare Mortgage Quotes

Learn what's available by requesting several mortgage quotes. Check with your bank and credit union, and shop online for mortgage rates and features:

• Repayment term: Loans with shorter repayment terms usually have lower mortgage rates, but they also come with higher monthly payments.
• Prepayment penalties: Mortgage loans carrying prepayment penalties require you to pay an additional amount if you pay off the loan prior to a specified date. If you're planning to pay off your mortgage loan in a few years, make sure there any prepayment penalty won't trip you up.
• Points: A point is one percent of your mortgage loan amount; one point on a $300,000 mortgage is $3000. Points are paid to reduce your mortgage rate; even if you have good credit, you may pay points for the best available rates.
• Closing costs: Review estimated closing costs, and question fees and charges you don't understand. Verify how closing costs can be paid; will they they be paid in cash at closing, or will you add all or part of your closing costs to your loan amount?

Ask questions, and remember that until locked mortgage quotes are subject to change.

Getting Pre-Approved

Getting pre-approved for your mortgage loan before shopping for a new home can provide leverage with buyers, and it also establishes a price range of affordable homes.