Understanding Current Mortgage Rates

At the moment current mortgage rates are fairly low; however, with the economy the way it is prospective borrowers could be a little hesitant to buy a home or refinance their current one. The average current mortgage rates in the US are as follows:

• 30 year fixed: 5.66 percent
• 15 year fixed: 5.04 percent
• 1 year adjustable: 5.8 percent

Interest rates fluctuate as the economy changes, but right now is a great time to buy a house if you qualify. The average current mortgage rates in the US have come down from last week, which were:

• 30 year fixed: 6.08 percent
• 15 year fixed: 5.50 percent
• 1 year adjustable: 5.61 percent

Borrowers can do their part to keep the current mortgage rates low by paying their mortgage loans on time and not to default on them. If you want to take advantage of the current mortgage rates try to prequalify for a mortgage loan. They should keep the jobs they have and weather the economic storm they are experiencing right now. You may have to cut back on luxuries to have the money to take care of your necessities, but if you can afford to take care of your commuting, and living expenses, and pay a mortgage loan, now is the time to buy a home.

Buying a home is probably the largest investment you will ever make. It is wise to purchase when the time is right. Your lender can help you decide which type of mortgage is best for you in terms of the current mortgage rates. If you don’t plan on staying in your home for many years you might find it more to your economic advantage to secure a loan with an adjustable rate mortgage (ARM). At the end of your term, if the next term’s ARM is higher than you want to pay you can change to another type of mortgage plan, or you can sell your home, pay off the rest of your mortgage and keep the profits.

Many younger people that are just starting out buying their first home may decide to secure a loan for a 30 year fixed mortgage; however, the homebuyer should look at the 15 year mortgage plan because not only is the term of the mortgage cut in half, but the interest rate is also lower than with the 30 year mortgage at this time. By securing the 15 year fixed mortgage loan the homebuyer will be saving many thousands of dollars.

If the thought asking for a mortgage loan is causing you anxiety, talk with a financial advisor at your bank or other lending institution. Your advisor can talk to you about the current mortgage rates and how they will affect the cost of your loan.