March 5th, 2010

Mortgage Rates Below 5% Are Available.  We’ve heard a lot about the Fed’s recent rate cuts and how that could send mortgage rates into the stratosphere, but it appears as if rates below 5% are currently available.

Freddie Mac’s average interest rate last week was 4.97%, down from 5.05%.  The rates haven’t stayed this low for so long since the 1950′s and some experts think that the government is orchestrating the low mortgage rates in response to the horrific economy.

On average, consumers pay .7% upfront in the form of points.  In addition, the average rate has hovered at or below 5% since September.

Lenders are typically looking for buyers with good credit and 20% to put down on a home.  These types of buyers will typically secure the best rates on loans – and can even negotiate rates below the advertised rates.

Those in the market for a new home may want to consider acting fast. Eventually, the interest rates will have to go up. With the rates so low for so long, it wouldn’t be surprising to see a sudden rate increase.

The above information given considers a 30 year fixed mortgage.  Those with a 15 year loan will enjoy lower interest rates around 4.3% with points of only .6%.

Purchasers who act now can receive a $6,500 or $8,000 tax credit that is available – but only for a short period of time.  Click here to find out more about the credits available.

Source:

LA Times