WEEKLY MORTGAGE RATES

Find the average rates in your city

HOW MUCH LOAN DO I QUALIFY FOR?

LOAN TYPE: Current/Previous
30 yr fixed mtg .....6.06% 6.09% (includes internet lenders)
15 yr fixed mtg..... 5.73% 5.76%
5/1 ARM ..............6.04% 6.12%
30 yr fixed jumbo ...7.02% 7.13%
5/1 jumbo ARM ......6.48% 6.55% (all down)

30-year mortgage rate rises
Mortgage rates moved both up and down this week, a strange time in credit markets. The benchmark 30-year fixed-rate mortgage rose 7 basis points, to 6.5 percent.
read: Bankrate's Interest Rate Roundup

Mortgage rates rise a bit
30-year rate climbs to 6.46 percent on weak economic news, says Freddie Mac.

Refinancing Adjustable-Rate Loans Becomes Harder for Borrowers
from the WSJ reports, homeowners are finding it tough to refinance even as rates climb. One reason: prepayment penalties. But others are getting caught short by a changing housing market.

Option ARMs: 5 ways to assess your risk - As higher payments kick in, holders of these adjustable mortgages should reassess and consider alternatives.

UrbanDigs finds Jumbo Rates Still Surging / ARM's Too

Always avoid first mortgages carrying pre-payment penalties. There is no reason to accept that loan provision and it can come back to bite you when your Option ARM is due to reset and you want to refinance early. I can live with a 12 month pre-payment penalty (2%).

Avoid paying down the rate on a loan in the form of points or origination. These can be rip-off fees that you may never recover unless you keep the loan more than 3 years. In fact, the A.P.R. is the most mis-leading rate that you will be quoted. Why? Because it spreads out the points over 30 years instead of the more likely 2-5 years in which you will likely keep the loan.

Do not refinance your house and combine consumer debt for the purposes of Debt Consolidation. Most lenders do not agree with me. However, why make unsecured debt secured by your home? Isn't that, in theory, putting your household at more risk than not in case something goes wrong? Also, you can not compare credit card rates (18%) to mortgage rates (6%) and conclude that it's "better" to take the lower rate when you are comparing unsecured to secured debt. You will no doubt be fooled by the lender's worksheet showing a lower combined monthly payment. But, simply call your creditors and negotiate lower rates.

Calculate: How much house can you afford?

Freddie Mac's Weekly Primary Mortgage Market Survey

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