Mortgage Rates Fall for Week of September 28

It's a good time to take advantage of some of the best mortgage rates and lowest home prices seen in years. Average rates for a 30 year FRM were 5.10 percent, with rates for a 15 year FRM and 5/1 ARM averaging 4.58 percent and 4.18 percent.

• We don't have enough for a down payment: FHA mortgage or a local first-time buyer program require between 0 and 3.5% down payments. Mortgage lenders can provide details about these programs, but basically, an FHA mortgage requires as little as 3.5% down, and first time home buyer programs can provide low cost down payment assistance. "First time buyer" is anyone who hasn't owned a primary residence within the preceding three years.
• What if home values go down? "What if" can be a dangerous game, but in light of current economic conditions, it can be a big decision to jump into the housing market. Today's lower home prices and some of the best mortgage rates are making homes affordable for more first time buyers.
• What about closing costs and points? In order to buy a home, you have to get a mortgage loan and go through a process called closing. Points are typically charged for getting better mortgage rates; one point is equal to 1% of your mortgage amount. Closing costs and points can range from 3% to 5% of your purchase price. You may be able to roll some of your closing costs into your mortgage or ask the seller to pay your closing costs.
• How much does home ownership really cost? When budgeting for buying a home, consider the additional costs of owning. Property taxes, hazard insurance, mortgage insurance, and routine home maintenance and repairs are some of the additional expenses. Paying for a professional home inspection is a worthwhile expense; it can reveal underlying structural or maintenance issues that could cost a bundle later.

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