Mortgage rates are still near historic lows, but have edged up slightly over the past week or so. The 30 year fixed mortgage rate benchmark is up 4 basis points to just around 5.8%, but keep in mind that your lender will likely tack on a few more basis points – or even more. so, just because rates are low, doesn’t mean you shouldn’t shop around!
A year ago, a 30 year fixed rate would have cost you around 6.62%, while a month ago it was 5.45%. I’m one of those unlucky souls with a 6.6% mortgage. We traded our starter home for a larger one before our 3rd child was born, and the rate was around 6.6%. Since we’ve been in the house a little less than a year, and housing prices haven’t gone up, we have very little equity and so we won’t be refinancing anytime soon.
But that’s OK, because that wasn’t part of our plan anyway. Our plan was twofold. 1. Get a fixed rate, 30-year Bi-Weekly mortgage. 2. Refinance in 10 years to a 15 year loan, again with Bi-weekly payments. This ought to save us boat loads of interest over the life of the loan.
Speaking of 15-year mortgages rates, those are down 3 basis points to 5.16%. And the 5/1 adjustable rate declined a whopping 11 basis points to 5.26%.
Last weeks dip in mortgage rates has spurred an increase in both new mortgages and refinances. Applications rose by a seasonally adjusted 6.6%.
Results of Bankrate.com’s June 24, 2009, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:
This week’s rate:
30-year fixed: 5.80%
15-year fixed: 5.16%
5-year ARM: 5.26%
Change from last week:
30-year fixed: +0.04
15-year fixed: -0.03
5-year ARM: -0.11
Monthly payment:
30-year fixed: $968.14
15-year fixed: $1,318.60
5-year ARM: $912.16
Change from last week:
30-year fixed: +$4.20
15-year fixed: -$2.60
5-year ARM: -$11.28
Data based on the Bankrate.com national survey of large lenders.
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