Mortgage Rates Back Down for Second Consecutive Week

Today’s mortgage rates have been on a rollercoaster ride following several consecutive months of drops and historic lows. That rollercoaster of rates is continuing as the current rates represent the second consecutive week of decline. Here are some of today’s mortgage rates:

• The mortgage rate for a 30-year fixed rate home loan is currently at 5.09 percent this week. Last week, the rate was at 5.16 percent. That’s a 0.07 percent decrease.
• For a 15-year fixed rate mortgage, the rates are currently averaging 4.28 percent. That’s a 0.06 percent drop from the previous week’s average of 4.34. percent.
• Are you looking for an FHA mortgage? With recent guidelines put into place, you can get one of these federally insured mortgages with only a 3.5 percent down payment if you qualify. Qualified borrowers can also get a 4.625 percent interest rate on an FHA loan for a 30-year fixed mortgage.
• Does an adjustable rate mortgage appeal to you? If you qualify, you can get a 5/1 adjustable rate mortgage starting at a 3.375 interest rate if you qualify.
• Are you in the market for a jumbo loan? Jumbo loans are home loans that are too large to be eligible for protection under Freddie Mac or Fannie Mae. Depending on where you live, the qualifying range for a jumbo loan is between $417,000 and $729,750. If you are a qualified borrower, you can get a jumbo loan at a rate of 5.375 percent with 5.495 percent APR. That’s for a 30-year fixed rate jumbo loan. For a 15-year fixed rate jumbo loan, you could expect rates as low as 4.375 percent with a 4.575 percent APR.

Of course, getting the best rate on a mortgage depends on several factors, including your credit history, the individual lender and the location where you plan on buying your home. When shopping for a mortgage, remember these tips to help you get the lowest possible rates:

• Compare deals from lenders and brokers
  Buying a home is probably the largest purchase you will ever make. Before jumping into it, compare the prices of as many lenders and brokers as possible. The lenders and brokers are not going to do the work for you. It’s up to you to find the best deal possible.
• Know your financial limits
  When determining how much house you can afford, remember to take into consideration the insurance, maintenance, taxes and other fees that go along with home ownership. Just because you can afford a $2,000 mortgage payment every month doesn’t mean you can afford the home.
• Find a trusted person to help you
  The language in mortgage contracts can be confusing if you are not familiar with buying a home. If you know someone in the mortgage industry that you trust, ask them for help before agreeing to anything. You don’t want to sign up for something that you don’t understand.