Mortgage Rates Today Updated Nov 26, 2014
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Updated 11/25/2014

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Updated 11/25/2014

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The advertised rates were submitted by each individual lender/broker on the date indicated. Rate/APR terms offered by advertisers may differ from those listed above based on the creditworthiness of the borrower and other differences between an individual loan and the loan criteria used for the quotes. More Info.. These quotes are from banks, thrifts and brokers who have paid for a link to their website in the listings above and you can find additional information about their loan programs on their websites.

Mortgage Rates Decline but Interest Rates are Moving Higher in 2014

Mortgage rates continue to decline this week, following 10 year bond yields lower which fell last week. 30 year mortgage rates today are currently averaging 4.23 percent, the lowest rate so far in 2014. The Mortgage Bankers Association forecasted average mortgage rates to increase this year but so far the opposite has happened.

The MBA’s forecast for higher rates this year makes sense since the Federal Reserve Open Market Committee has started tapering their buys of long term U.S. bonds and mortgage-backed securities. The FOMC was buying $85 billion a month in these securities but announced in January their buys would only be $75 billion.

Then in January they announced they would only by $65 billion a month. The FOMC started these buys over a year ago and they were designed to force both long term bond rates and mortgage rates lower. This policy did succeed at forcing both mortgage rates and long term bond rates down to record lows in late 2012 and early 2013.

The FOMC’s other major policy that has sent interest rates down to record lows is keeping the federal funds rate near zero percent. The FOMC has kept the rate near zero percent for more than 5 years and unfortunately this has also hurt deposit rates. Right now the best CD rates on 12 month certificates of deposit are around 1.10 percent to 1.20 percent. The best savings rates are slightly lower at 1.00 percent.

If you bought a home or refinanced a mortgage over the past 5 years you lucked out, we probably won’t see mortgage rates or refinance rates this low again in our lifetimes. If you live on interest income earned from deposit accounts you are probably struggling since CD rates, savings rates and money market rates are also low.

In the coming years all interest rates will be heading higher, mortgage rates and bond rates have already moved higher in 2013 on the fears of the FOMC tapering. This sent long term U.S. Treasury yields up by more than 1.00 percent last year and also send conforming mortgage rates higher by around 1.25 percent last year.

Deposit rates remained low and will remain low until the FOMC increases the fed funds rate. This isn’t expected to happen for at least another year since the economy is still dicey and the unemployment rate is still rather high at 6.6 percent. Time and time again the FOMC has stated they won’t increase the fed funds rate until there is “full employment” or inflation higher than 2.5 percent. Full employment is an unemployment rate of 5.5 percent or less.

The FOMC released economic forecasts for the next several years and all the Committee members believe inflation will remain at or just under 2.00 percent for the next three years. Though inflation won’t trigger a higher fed funds rate the FOMC has also forecasted a need to increase the rate sometime in 2015.

This is good news for retires and others who have money in certificates of deposit or variable interest rate accounts because a higher fed funds rate will mean higher deposit rates. You will have to wait until the second or third quarter of 2015 for higher rates but at least there is light at the end of the tunnel.

By the end of 2014 average 30 year mortgage rates are forecasted to be around 5.00 percent and by the end of 2015 average 30 year rates are expected to be slightly above 5.00 percent. Forecasting rates longer than a year is tricky because we just don’t know how strong economic growth and inflation will be.

Regardless of where mortgage interest rates are in a year or two rates are moving higher. Home prices are also forecasted to increase over the next couple of year so if you have been waiting to buy a home now is a good time to do so. The higher home prices rise and the higher mortgage rates rise the less home you can afford.

Bank CD rates and variable interest rate accounts will move higher next year, by the end of 2015 the highest CD rates on 1 year certificates of deposit will be north of 2.00 percent.  The best savings rates and money market account interest rates will also be above 2.00 percent. So if you have a CD account maturing over the next 18 months don’t lock into a long term rate, roll it over into a shorter term CD account of 6 months or less.

Right now there are actually some banks offering 6 month certificate of deposit rates that are a good deal right now. Checking on rates on cdrates.me I found Zions Direct offering 6 month CD rates at 1.00 percent which is higher than what most banks are offering for 1 year CD rates. If you do have a CD account maturing over the next year rolling it back over into a 6 month CD at 1.00 percent is a good idea.

Just remember to position for finances for higher interest rates in the coming years, refinance your mortgage if you’re current mortgage is more than 1.00 percent higher than current rates. Don’t lock into a longer term certificate of deposit at current low rates because you will lose out on higher interest rates in the coming years.

 

 


Mortgage Rates Today Increase on Concerns of Federal Reserve Tapering Bond Purchases

Since late spring there has been growing concern the Federal Reserve would slow down their bond purchases which has kept mortgage rates today at low levels. The Federal Reserve has been buying long term bonds through it’s rounds quantitative easing, currently the Federal Reserve is on it’s third round of easing, known as QE3.

Mortgage Rates Today Still Low Thanks to Federal Reserve’s Quantitative Easing

Until this spring the Federal Reserve’s easing has kept 30 year conforming mortgage rates under 4.00 percent. In the Winter of 2013 you could easily find lenders quoting fixed conforming mortgage rates on 30 year loans as low as 3.00 percent. Of course you had to pay points to obtain a 30 year mortgage rate that low.

Current mortgage rates on 30 year loans are about 1.00 percent higher thanks to 10 year bond yields going from 1.60 percent to almost 3.00 percent. Lenders tie mortgage rates offered on loans to 10 year U.S. bond yields. They do this because most of the time mortgage loans are repackaged together and sold to investors. Having a competitive interest rate on these securities allows them to be sold to investors.

Lowest 30 Year Mortgage Rates Today

The lowest 30 year mortgage rates today available are above 4.00 percent around 4.50 percent. 10 year bond yields are up another 0.05 percent today to 2.90 percent, this will send mortgage rates higher in the coming days. Higher mortgage rates combined with higher home prices across most of the U.S. is lowering home affordability.

Basically you can afford less home now that you could just a year ago since mortgage rates are up on average above 1.00 percent. Home prices are up on average about 10 percent, some home price increases have been higher or lower depending on the area of the country. Prices and rates have moved higher but homes are still more affordable then they were during the housing bubble.

Today’s Mortgage Rates on 15 Year Conventional Loans

Today’s mortgage rates on 15 year conforming loans have also moved considerably higher. Right now the lowest 15 year mortgage rates today quoted by lenders are above 3.00 percent. In March of 2013 you could easily find mortgage lenders quoting 15 year conventional mortgage rates as low as 2.50 percent with points.

The lowest 15 year refinance rates today on conventional loans are at 3.25 percent with points. The lowest 15 year mortgage refinance rates today without points are around 3.50 percent. If you’re looking into refinancing a 30 year mortgage you should refinance to a 15 year loan. While the monthly mortgage payments will be higher you will save a bunch of interest payments over the life of the loan.

Current Jumbo Mortgage Rates Today

Mortgage interest rates today on 30 year jumbo loans are nearing 5.00 percent. This rate is also much higher from earlier this year when there were lenders quoting jumbo mortgage rates as low as 3.75 percent with points. The lowest 30 year jumbo mortgage rates today are much higher at 4.875 percent with points.

Current mortgage rates today on 15 year jumbo loans are much higher than rates were just a few months ago. Back in early May you could easily find lenders quoting 15 year jumbo rates as low as 2.75 percent with points. Right now the lowest 15 year jumbo mortgage rates are around 3.50 percent.

Historically speaking current mortgage rates are still very low and we probably won’t see mortgage rates as low again for the next 30 years. I remember back in the early 1980′s mortgage rates were in the double digits. In 1983 during the height of a bad round of inflation average 30 year mortgage rates were above 17 percent!

So even if rates have increased 1.00 percent over the past many months rates are still very good. Don’t wait, if you’re close to buying a home or refinancing a mortgage loan do it today!

 

 


Mortgage Rates Today Make New Lows Thanks to FOMC

Just when you thought it was the best time to go ahead and pull the trigger to refinance your loan mortgage rates today make new lows. I just refinanced my mortgage loan back in March of this year and got a 15 year mortgage rate of 3.50 percent, now there are lenders offering current mortgage rates on 15 year loans as low as 2.25 percent with points, which is much lower than Freddie Mac’s average 15 year conforming mortgage rate in the most recent Primary Mortgage Market Survey (MMS).

In Freddie Mac’s mortgage rate survey for the week that ended on October 11, 2012, average 30 year mortgage rates were at 3.39 percent with  0.7 mortgage points, which is actually higher than the prior week’s average 30 year mortgage interest rate of 3.36 percent. In the prior week’s survey average 30 year mortgage interest rates hit a record low. There has been so many record lows sent on both conforming mortgage rates and jumbo mortgage rates it is hard to keep track.

Today’s mortgage rates on 30 year conventional home loans are lower and make a new record low. Current mortgage rates today on 30 year conventional home loans are averaging 3.35 percent. There are also lenders already offering 30 year mortgage rates today below the averages. On our mortgage refinance rates list for the state of California we have many lenders offering 30 year refinance rates on conforming loans at 3.125 percent with points without points you can find 30 year refinancing rates as low as 3.375 percent.

Average 15 year mortgage rates for the week ending October 11, 2012, were also slightly higher averaging 2.70 percent with 0.6 mortgage discount points. The average 15 year conforming mortgage rate was also higher from last week’s average of 2.69 percent. Mortgage rates current on 15 year conforming loans also just make another record low today averaging 2.64 percent. We will probably see 15 year mortgage rates falling as low as 2.25 percent on average before the year is over.

Speaking of mortgage rates as low as 2.25 percent on 15 year conforming loans you can already find lenders offering rates so low. First Internet Bank is offering 15 year refinance rates as low as 2.25 percent with just over 1 mortgage point. We also have lenders listed right here offering 15 year mortgage rates in the 2.25 percent range with a point or two. We also have lenders offering 15 year refi mortgage rates today without points at 2.625 percent.

Adjustable mortgage rates current were also higher for the week that ended on October 11, 2012. Average 5 year adjustable mortgage rates today are at 2.73 percent with 0.6 points, up from the prior week’s average 5 year adjustable mortgage interest rate of 2.72 percent. Current mortgage rates on 5 year conforming adjustable loans can be found well below the average rate. Currently in the state of Texas we have lenders offering 5 year adjustable refinance rates today as low as 1.875 percent with points.


Mortgage Rates Today Increase on Higher U.S. Bond Yields

Higher bond yields have forced mortgage rates today higher for the fourth consectutive week in Freddie Mac’s Primary Mortgage Market Survey. In this week’s mortgage rates survey conventional 30 year mortgage rates averaged 3.66 percent with 0.7 mortgage discount point.

Current mortgage rates on 30 year conforming loans are up from the previous week’s survey of 3.62 percent. Since Freddie’s mortgage rates survey came out on Thursday average 30 year conforming mortgage interest rates have moved lower again.

Today’s mortgage rates on 30 year conventional home loans are averaging 3.59 percent. The mortgage rates listed above are average mortgage rates, there are lenders advertising 30 year conforming rates below the averages. You can find rates well below the averages with points and the more points you pay the lower the refinance mortgage rates are.

Right now on our 30 year conventional refinance rates list in California there are lenders offering 30 year rates at 3.50 percent without points. If you’re willing to pay points you can find 30 year refinance rates as low as 3.25 percent.

Average 15 year mortgage rates have also gone higher in this week’s mortgage survey but have declined since. Mortgage rates current on 15 year conforming loans averaged 2.89 percent with 0.7 mortgage discount points, an increase from an average 15 year refinance mortgage rate of 2.88 percent.

Mortgage rates currently on 15 year conventional home loans have declined 4 basis points to an average rate of 2.85 percent. Right now there are home loan lenders offering 15 year rates as low as 2.75 percent without points. There are also some lenders offering 15 year refi rates as low as 2.25 percent with 2 mortgage points.

Adjustable mortgage rates were up on 5 year conforming adjustable loans and down on 1 year conforming adjustable home loans this week. Mortgage rates today on 5 year adjustable mortgage rates averaged 2.80 percent with 0.6 mortgage discount point, up from the previous week’s average 5 year rate of 2.76 percent.

Current 5 year adjustable mortgage rates on our rate list can be found below the average rate. Rates in Texas on 5 year adjustable loans can be found as low as 2.75 percent and with points as low as 2.50 percent.

1 year adjustable mortgage interest rates averaged 2.66 percent with 0.4 mortgage discount points, down from an average 1 year adjustable mortgage rate of 2.69 percent.


Today Brings Another Round of All-Time Low Mortgage Rates

Today brought another round of all-time low mortgage rates with no end in sight to the declines. Both mortgage rates and refinance rates today are at record lows after hitting record lows the previous week. Current mortgage rates today on 30 year mortgages are averaging 3.71 percent, down from yesterday’s average 30 year mortgage rate of 3.74 percent.

I just refinance my loan about 14 months ago, the interest rate on a 30 year loan I refinanced at was 5.15 percent. Now that 30 year rates are below 4.00 percent I’m thinking of refinancing again. I used a mortgage calculator and figured out with my loan amount if I get a refinance rate at 3.75 percent I can save $567.33 a month on my payments. Over the life of the loan my savings are over $100,000!

30 year rates made new lows the past 3 weeks but 15 year mortgage rates today are also at record lows and made record lows the past 6 weeks. Current 15 year mortgage interest rates are averaging 2.86 percent, down from yesterday’s average 15 year mortgage rate of 2.91 percent. Just last week 15 year mortgage rates broke 3.00 percent.

Today’s mortgage rates on adjustable home loans are also very low. Current interest rates on conforming 5 year mortgages are averaging 2.89 percent, down from yesterday’s average 5 year rate of 2.94 percent. 1 year rates are even lower today averaging 2.71 percent, a decline from yesterday’s average 1 year adjustable rate of 2.73 percent.


Another Round of Record Low Mortgage Rates Today

Just when you thought we hit the bottom on current mortgage rates we find rates have decreased yet again. Mortgage rates today on fixed conforming 30 year mortgage rates declined to a record low of 3.73 percent. 30 year rates today are lower than the Mortgage Banker Association’s average 30 year rate of 3.91 percent set on May 25th which is also a low. You can expect next week’s MBA survey to have even lower average rates.

30 year jumbo current mortgage rates averaged 4.23 percent in the survey, this is down from the May 18th average jumbo mortgage rate of 4.25 percent. There are many lenders offering 30 year jumbo mortgage rates under 4.00 percent.

Average 15 year mortgage rates declined for the week ending May 25th 2012,to 3.23 percent, this is also down from the May 18th record low of 3.26 percent. Today’s mortgage rates on 15 year loans are even lower averaging 3.02 percent. If you want to refinance and can you should do so, we might not see 15 year mortgage rates this low again in our lifetime!

30 year FHA loans are also lower at 3.70 percent for the end that ended on May 25th. This is down from another record low of 3.73 percent that was set on May 18th.

Last but not l


Low Bond Yields Today Drive Current Mortgage Rates

Low bond yields today drove current mortgage rates to new all-time lows. Fixed conforming 30 year mortgage rates and 15 year mortgage rates today hit all-time lows in Freddie Mac’s current Primary Mortgage Market Survey. This is the third consecutive week that 30 year mortgage interest rates made new record lows.

In the PMMS survey for the week ending May 24th, todays’ mortgage rates on fixed conforming 30 year mortgages hit a new record low of 3.78 percent with 0.8 mortgage loan points, down from the previous record low of 3.79 percent. 30 year rates a year ago here almost 100 basis points higher at 4.60 percent.

I remember at the time thinking wow, 30 year mortgage rates are under 5.00 percent, I should look into refinancing my loan because refinance rates were just as low. Now that 30 year refi rates are under 4.00 percent I’m thinking about refinancing my loan again. In fact I’m thinking about refinancing to a 15 year loan since current rates on 15 year loans are even lower than 30 year rates.

15 year mortgage rates are averaging3.04 percent with 0.7 mortgage loan points for the week ending May 24, 2012, tying a record low set in the previous week’s survey. A year ago 15 year mortgage rates were averaging 3.78 percent. You can find lenders offering 15 year interest rates even lower than 3.00 percent. I just saw one lender advertising a rate of 2.65 percent on a fixed 15 year loan!

Current adjustable mortgage rates were mixed in last week’s survey. 5 year adjustable mortgage interest rates are averaging2.83 percen with 0.6 loan points, unchange from the prior week’s average rate. Last year 5 year adjustable rates were higher averaging 3.41 percent. Again, I remember thinking, wow 3.41 percent is an incredibly low loan rate.

1 year adjustable rates are averaging 2.75 percent with 0.4 loan points, down from last week’s average 1 year rate of 2.78 percent. Last year 1 year rates were averaging 3.11 percent. I remember when 1 year CD rates were at these levels though I wouldn’t get an adjustable loan when I can get a fixed rate on 15 year loans under 3.00 percent.


Fixed Conforming Mortgage Rates Today Hit New Lows Causing Refinance Demand to Increase

Just when you thought mortgage rates today couldn’t move any lower they have causing a boom in homeowners looking to refinance their mortgage loan. Current mortgage rates on conforming 30 year loans, conforming 15 year loans and FHA loans all hit a new all-time low in this week’s Mortgage Bankers Association’s application survey causing refinance applications to increase 5.6 percent.

Refinance demand was fueled by conforming 30 year mortgage rates hitting an all-time record low of 3.93 percent for the week ending May 18, 2012. This rate is down from last week’s average rate of 3.96 percent. Mortgage rates today are even lower than the MBA’s rate since the MBA’s rate is as of May 18, 2012. Rates have fallen since then and you can find some lenders offering 30 year conforming mortgage rates as low as 3.50 percent if you’re willing to pay mortgage points.

Also contributing to refinance demand today is ultra low 15 year mortgage interest rates. In the survey 15 year mortgage rates averaged 3.26 percent, unchanged from last week’s all-time record low. You can get 15 year mortgage rates today from lenders as low as 2.75 percent, again if you’re willing to pay mortgage points to get a lower rate it’s available.

Current FHA mortgage rates today averaged 3.73 percent, down from last week’s record low FHA mortgage rate of 3.75 percent. FHA mortgages are government guaranteed mortgage loans. Lenders offer FHA mortgage rates lower than regular conforming mortgage rates since the government guarantees they will be paid back.

Jumbo mortgage rates, which are rates for jumbo mortgages not backed by the government run higher than both conforming and FHA rates. Current jumbo mortgage rates today on 30 year loans are averaging 4.25 percent, an increase from the previous week’s average of 4.20 percent.

Also moving higher in this week’s survey on mortgage rates on adjustable conforming loans. Current adjustable mortgage rates today are averaging 2.83 percent, an increase from 2.80 percent last week.


Mortgage Rates Jump Higher This Week

Mortgage rates jumped higher this week as 10 year bond yields moved back over 2.00% sending current mortgage rates higher. Mortgage rates today on 30 year home loans are averaging 4.08% with 0.8 mortgage points for the week ending March 22, 2011 according to Freddie Mac. Today’s mortgage rates on 30 year loans are up from last week’s average mortgage interest rate of 3.92%.

30 year conforming mortgage rates have stayed under 4.00% for most of 2012. Recent positive economic news has sent bond yields higher, since most advertised mortgage rates are tied to bond yields mortgage rates have headed higher.

Fixed conforming 15 year mortgage rates are also higher in this week’s Primary Mortgage Market Survey. Mortgage rates current on 15 conforming loans are averaging 3.30% with 0.8 points, up from last week’s average 15 year mortgage rate of 3.16%.

Adjustable mortage rates on both 5 year adjustable loans and 1 year adjustable loans moved higher this week. Average 5 year adjustable mortgage rates are at 2.96% with 0.7 points, up from the previous week’s average adjustable rate of 2.83%. 1 year adjustable mortgage interest rates are averaging 2.84% with 0.6 points, an increase from last week’s average 1 year rate of 2.79%.

Although average mortgage rates increased this week the mortgage rates trend is stable rates for the foreseeable future. Even if rates do move higher they are so low now you still can get a good deal on a loan. Also remember that these average rates are just averages you can find mortgage rates or refinance rates even lower than these rates.

Here is an interesting video on Making Home Affordable information on refinancing even though mortgage rates today are higher:

Right now on our mortgage rate tables several lenders are offering mortgage rates lower than 4.08% for a 30 year loan. CapWest Mortgage is offering 30 year conforming rates at 3.97%. Seckel Capital is offer 30 year rates even lower at 3.92%.

To see what rates you can get on home loans just search the rate table on mortgageratescurrent.org. Just enter your loan amount, select the loan types and term, the state the home resides in and if the loan is for a purchase or a refinance.

Either way you get go wrong searching for rates these days. If you already own a home and have a mortgage that is 1.00% higher than current mortgage rates it makes financial sense to refinance. Chances are if your current loan as a rate (30 year loan) of 5.00% or higher it makes sense to refinance. That is as long as you plan to stay in your home long enough to recoop the refinance costs.


Mortgage Rates Today Move Lower as Treasury Yields Decline

Increadibly low mortgage rates today move lower again as Treasury Yields declined again this past week. 10 year bond yields which have been under 2.00% for a while now along with 30 year current mortgage rates today being lower than 4.00%. 15 year conforming current mortgage rates today near historic lows at 3.14%. If you don’t know what mortgage loans are or how to get today’s mortgage rates at the lowest level from lenders you should read the information below.

Mortgages are loans home buyers get in order to afford to buy a home. Most people don’t have the hundreds of thousands of dollars to buy a home that’s where mortgages come into pay. When you get a mortgage you are borrowing money to buy the home and the lender is agreeing to lend you such a large some of money since the home is being used as collateral.

Current mortgage rates are not made up by lenders but tied to an index. There are several different indexes and depending on the lender set rates to one of the indexes. The most common index is a Treasury Security index. Other indices’ include the Cost of Funds Index and the London Interbank Offered Rate (LIBOR).

There are also different types of mortgages like fixed rate mortgages and adjustable rate mortgages. With fixed rate mortgages the interest rate stays the same for the entire life of the loan. When you apply for a loan you can lock-in the current mortgage rate since it takes a couple of months to close on a home loan.

Adjustable mortgage rates have a fixed period, usually 1 year, 3 year or 5 years depending on the mortgage type. After the initial period the mortgage rate changes usually every year. This can help you save money when mortgage rates move lower but cost you money when mortgage rates move higher.

The index and the margin on home loans are available from several types of lenders all you need to do is search for the best mortgage rates on home loans but at first, lower rates makes the ARM easier on your monthly payments than would be a fixed mortgages.

In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount and total costs for getting the loan. These costs are among the most common fees but this may not always be clear so you should ask each lender what their fees are.

When you compare mortgage rates you’ll see a rate and an annual percentage yield. If the APR is significantly higher than the initial mortgage rate, then it is likely that your rate and payments will be a lot higher when the mortgage loan adjusts in the future.

Mortgage rates are low so ask each mortgagee lender or broker for a list of today’s mortgage rates along with all fees involved on the loan.

Lenders base adjustable mortgage rates on a variety of indexes be sure to get information about mortgages from several lenders. Current rates are low but you can expect mortgage rates to increase in the future since the economy is getting better, unemployment is going lower and interest rates are sure to go higher in the coming years.

Once you have researched and you have an understanding of what each mortgage lender has to offer you should negotiate with them for the best possible mortgage rate, lowest mortgage rates and lowest closing costs.

Lenders offer different mortgage rates for the same loan terms to different people so you need to negotiate just like you would when you buy a car. Don’t be afraid to negotiate since you are paying for the mortgage loan. A .50% lower mortgage rate can be thousands of dollars in mortgage interest savings over 15 or 30 years.

To give you can example of where mortgage rates are right now The Money Store, Amerisave, Quicken Loans and Aimloan are all offer conforming 30 year mortgage rates under or just above 4.00%.

So you can see the difference between the lowest available mortgage rates price for a loan product and any higher mortgage rates can be at least 1.00% or higher. When comparing rates have the lender write down all the closing costs associated with the loan and what rate they can lock-in the mortgage at.

Ask if they will reduce one or more of its mortgage fees or maybe even give you a better mortgage rate when they originally quoted you. Once you are satisfied with the mortgage rate and mortgage terms you have negotiated, get the mortgage rate locked-in.

The lock-in should include the current mortgage rate that you have been quoted and agreed to and the number of mortgage points. You need to lock-in the mortgage rate since there are many steps when closing on a home loan and like I already said it can take 2 months or even 3 months.

When you lock-in you will probably pay a $200 to $300 fee to do so but the fee is small compared to getting a higher mortgage rate which will cost you tens of thousands of dollars in addition interest payments for a 30 year loan or 15 year loan.

Which type of home loan you get is up to you but good luck shopping for the lowest mortgage rates today!


Mortgage Rates Today Make Refinancing Worth While

Mortgage Rates Today

Mortgage rates today make refinancing your home mortgage loan worth while if the current mortgage rate on your home loan is at least 1.00% higher than today’s mortgage rates. Right now 30 year mortgage rates are around 4.00% so if you have a home loan with a mortgage rate at 5.00% or higher refinancing will save you money.

Better yet if you feel you can refinancing from a 30 year mortgage to a 15 year mortgage current mortgage rate on 15 year home loans are even lower than 30 year mortgage rates. Right now you can secure a 15 year mortgage rate 3.25%. If you have a 30 year loan at a higher rate as compared with today’s mortgage rates you’re monthly mortgage payments might not even go up that much.

Dont’ know what home equity means? Home equity is the dollar value difference between the balance you owe on your mortgage loan and the value of your home. Example: Your home is worth $500,000, you owe $400,000 on your home loan, the equity in your home is $100,000.

Of course there are other factors that come into play, the main factor being do you have enough equity in your home to refinance. Most lenders require at least 20 equity which means you can’t borrow more than 80% of your homes value.

You can find lenders that are will to go higher than 80% so when you’re shopping around and comparing mortgage rates currently available ask what loan to value they are going up to. If you’re not taking any cash out of your home when refinancing you might find a lender going up to 90% or more.

There is also a government program called Making Home Affordable which allows homeowners to refinance a loan held by Freddie Mac or Fannie Mae with a lot higher Loan To Value (LTV) ratio. Here is a Making Home Affordable video which is explains some of the program:

If you do have enough equity in your home you might choose to refinance, and take cash out to remodel your home, payoff credit cards or pay for your son or daughter college education. If you take cash out to pay for other things realize that you will pay interest on the additional cash you take out. Since mortgage rates are so low right now the interest rate you pay on the mortgage will probably be less than a credit card rate or any other loan rate.

Remember that, along with the potential benefits to refinancing, there are also costs when you refinance even with lower mortgage rates. Yes, mortgage rates today have fallen to record lows when you refinance for an amount greater than what you owe on your home. You can receive the difference in a cash payment this is called a cash-out refinancing. But regardless you could shop the lowest mortgage rates currently available.

One of the drawbacks to refinancing is the mortgage settlement costs (closing costs) you have to pay. If you plan to stay in your home or a long while the costs you pay at closing can be regained in interest saving.

To sum-up refinancing only makes sense if the mortgage rate on your current home loan is at lest 1.00% higher than mortgage rates today. In addtion, if you are planning on refinancing make sure you’re not planning on selling your home in a couple of years because you won’t make up the closing costs you have to pay in interest savings in 2 years or less. Shop around and compare mortgage rates to get the best mortgage rate possible.


Shopping for the Best Current Mortgage Rates

Current mortgage rates are very low right now so if you’re thinking about buying a home or refinancing your current mortgage loan you should do so right now. Comparison shopping for the best current mortgage rates takes lots of time and energy. Comparing mortgage rates current will help you save tens of thousands or even hundreds of thousands of dollars over the life of a loan.

You take the time to comparison shop for a car or other large ticket items a like a flat screen T.V., auto insurance or anything else so why not take the time to find the lowest mortgage rates today? You can compare today’s mortgage rates from direct lenders, mortgage brokers and comparison shopping sites.

Current Mortgage Rates

There is a difference between getting a mortgage loan directly from a lender and from a broker. Mortgage brokers arrange home mortgage loans with a mortgage lender rather than lend money directly. Brokers who find you a mortgage sell you a loan from a lender.

Which ever direction you go in to find the lowest mortgage rates currently available it’s up to you to find the best rate. Neither mortgage lenders nor mortgage brokers have to find the best mortgage rate or refinance rate for you.

If you never shopped for a mortgage or closed on a loan you probably don’t understand most of the terminology you hear from lenders. Many people don’t spend the time to find the best rate and don’t realize that there may be a better rate and loan. Current mortgage rates change every single day and mortgage brokers and lenders offer different mortgage interest rates all the time.

When shopping you can look at different mortgage point combinations that will lower your rate, you should also use an amortization mortgage calculator to help you decide which mortgage loan is best for you.

A good step to take before you go shopping is to figure out how much you can afford in monthly mortgage payments. To get started review your monthly spending plan to estimate what you can afford to pay for a home, including the mortgage, property taxes, insurance, and monthly maintenance and utilities.

There are many different types of mortgage loans available with many different features. There are fixed rate mortgage rates, adjustable rate mortgages, FHA mortgages, VA mortgages ,etc. Some mortgages also might have payment adjustments and some other types of mortgages you pay only the interest on the loan for a while and then you pay down the principal. This type of mortgage is an Interest Only (IO) mortgage.  

So you can see there are many choices to make and things to consider. Another factor (cost) when getting a mortgage is the mortgage closing costs. These costs include all the fee associated with the mortgage loan process. There fees will cost thousands of dollars so you have to take this into consideration as well. The good news is most of the time these fees can be rolled into a loan so you don’t have to come up with several thousands of dollars out of pocket.


Adjustable Mortgage Rates the Stepchild

As the first chart in this post reveals, the ARM share increased slightly over 2010, as current mortgage rates make new lows a trend that was highlighted in a March New York Times article.Consistent with evidence first presented by researchers at New York University, our study shows that, as a “rule of thumb,” the difference between the current mortgage rates, FRM interest rate and the average adjustable rate over the past three years can quite successfully account for households’ choices between fixed-rate and adjustable-rate mortgages.

In a recent article in the Federal Reserve Bank of New York series Current Issues in Economics and Finance, Emanuel Moench, Diego Aragon, and I analyze which demand-side and supply-side factors explain this recent decline in the adjustable-rate mortgage share.

The low current share of adjustable-rate mortgages is documented in the chart below, which plots the ARM share using information from two large mortgage datasets.One reason is simply the sheer size of the mortgage market: according to Federal Reserve Flow of Funds data.

Although the fraction edged up slightly in 2010, it remains close to historic lows, with less than 10 percent of mortgage originations since 2009 featuring an adjustable interest rate.These two institutions are central to the current U.One reason is that falling home prices have reduced the size of an average mortgage.

A similar rule-of-thumb variable—in this case, defined in terms of Treasury interest rates, rather than mortgage rates—does nearly as well.Perhaps unsurprisingly, we find that relative interest rates on the two types of loans are a key determinant of household decisions.

The fraction of mortgage borrowers who choose an adjustable-rate loan has fallen significantly over the past five years or so.The mortgage rule-of-thumb variable (top bar) can account for about 80 percent of the variation in the ARM share over the past twenty years.

For various reasons, the ARM share is much higher in the jumbo market, as my previous research shows.One key factor is the role of Fannie Mae and Freddie Mac.In contrast, if the adjustable rate has been low for a longer period, households may be more confident that the shift is permanent, making an ARM seem safer.

This is important because in recent years the share of jumbo loans has fallen sharply.More interestingly, however, we also find that households’ choice between ARMs and FRMs depends in part on past interest rates, not just current ones.

Significantly, our model also accounts for the recent rise in the ARM share.2 trillion in residential mortgage debt, representing 73 percent of all household liabilities.In countries like the United Kingdom, Canada, and Australia, where most mortgages are tied to short-term interest rates, a change in the central bank’s policy interest rate quickly changes mortgage payments and cash flows for existing borrowers.

Both these variables explain a larger share of fluctuations in the ARM share than the current difference between fixed and adjustable interest rates (“mortgage spread” in the chart).The share reached around 10 percent by the start of 2011, according to both of our datasets.Why should the findings presented in this post interest policymakers?

The combination of falling home prices and rising conforming loan limits implies fewer jumbo loans and hence a smaller ARM share.Some loans, however, are amortizing adjustable-rate mortgages (ARMs), whose interest rates move with a market rate like the London interbank offered rate (Libor), generally after an initial fixed-rate period of two to seven years.

In the United States, where ARMs are less common, the cost of mortgage finance is tied more closely to long-term interest rates such as the ten-year Treasury rate, over which the central bank has less control.Given the importance of the mortgage market for households, banks, and the broader economy, future trends in mortgage choice will be closely followed by policymakers, regulators, and lenders alike.

Significantly, the two institutions are prohibited from purchasing “jumbo” loans—mortgages whose value exceeds a set of dollar limits known as the “conforming loan limits.And what are its implications for borrowers and policymakers?In the United States, most loans take the form of a thirty-year level-payment fixed-rate mortgage (FRM).

According to the model, the key driver of this rise was an increase in fixed-rate mortgage interest rates and longer-term Treasury yields relative to the low short-term rates and ARM rates experienced in the past three years.In addition, from 2008 onward, the single-family conforming loan limit was raised to as high as $729,750 in areas with high housing costs.The power of this rule of thumb is highlighted in the chart below, taken from our paper, which shows the correlation between a number of macroeconomic variables and the share of ARMs.

Thus, changes in the Federal Reserve’s federal funds rate target have only an indirect effect on most mortgage interest rates.For data reasons, the chart focuses on purchase-only mortgages (those used to finance a new home purchase), although the trends are similar for refinancings as well.If ARM rates have fallen only recently, households may expect higher rates in the future, making an ARM a riskier choice.

What explains the striking decline?Said differently, because the ARM share has been near historic lows in the United States for some time, the transmission of changes in the federal funds rate through the mortgage market to the real economy may be weaker than it was just a few years ago.Moreover, the sensitivity of mortgage debt to short-term interest rates shapes how monetary policy influences the broader economy.

ARM share since 20 The interest rate rule-of-thumb variables (the green and brown portions of the bars) account for the majority of the decline in the ARM share—a reflection of the sharp declines in fixed-rate mortgage interest rates since 20 The red portions of the bars represent the contribution of the decreasing size of the jumbo market; this supply-side shift explains a smaller but still important component of the declining ARM share.

Supply-side factors relating to the financial crisis also help account for the composition of recent mortgage originations.The national limit for a single-family home is currently $417,0) How do the activities of Fannie and Freddie affect the market share of adjustable-rate mortgages?One interpretation of this finding is that household mortgage choice doesn’t react strongly to temporary dips in the ARM interest rate.

The bottom line of our research is that the low ARM share observed over the past few years—as well as the slight rise in the share in 2010—is not a mystery.Both can be accounted for by a combination of demand-side factors that also explain earlier fluctuations in the ARM share, as well as supply-side factors related to the recent financial crisis.


Refinance Activity Surges as Current Mortgage Rates Decline

The number of home owners refinancing surged in the most recent mortgage survey thanks to mortgage rates current being near record lows. Mortgage applications increased 21.7 percent for the week ending August 5, 2011, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

Current mortgage rates on 30 year home loans declined to 4.37%, down from the previous week’s average 30 year mortgage rate of 4.45%.  Current mortgage discount points on 30 year mortgage loans increased to 1.07 points, up from the previous week’s average of 0.78 mortgage points.

Mortgage rates currently on 15 year mortgage loans was unchanged for the week ending August 5, 2011. Current mortgage rates on 15 year mortgage rates are averaging 3.52%. Today’s mortgage discount points on 15 year mortgage loans decreased to 0.96 points, down from the prior week’s average of 1.02 points.

Bond yields have declined significantly over the past several weeks which will force today’s mortgage rates lower. A year ago around this time 30 year mortgage rates were higher around 5.00%, now mortgage rates today are near lows for 2011 and near record lows.


Mortgage Rates Currently Lower on Debt Deal and Lower Bond Yields

Mortgage Rates Currently

Mortgage rates currently are lower on the debt deal that was reached and signed into law yesterday breaking the trend of higher mortgage rates. Another factor that will send current mortgage rates lower is a slowing economy which is sending 10 year bond yields reeling. 10 year bond yields hit a low of 2.62% yesterday, just this past February 10 year bond yields were much higher at 3.72%.

30 year mortgage rates are averaging 4.45%, down from an average 30 year conforming mortgage rate of 4.53 percent yesterday. Since bond yields continue to decline we can expect 30 year mortgage rates to break below the all-time low of 4.17% reached late last year.

15 year conforming mortgage rates current are also lower averaging 3.63%, down from an average 15 year mortgage rate of 3.70%. 15 year mortgage rates will break 3.50% in the coming weeks and probably make an all time low sometime this year.

Jumbo mortgage rates on 30 year home mortgage loans are averaging 4.79%, down from an average jumbo mortgage rate of 4.95%. Jumbo mortgage rates hit a new low for 2011 and will continue to decline just like conforming mortgage rates.

Today’s mortgage rates on 5 year conforming adjustable mortgage loans are averaging 3.02%, down from an average 5 year adjustable rate of 3.10%. 5 year adjustable jumbo mortgage rates are averaging 3.31%, down from yesterday’s average 5 year jumbo mortgage rate of 3.43%.