Current Mortgage Rates
Thursday, August 21, 2008
Some ARMs, including interest-only and payment-option ARMs, may require you to pay special fees or penalties if you refinance or pay off the ARM early (usually within the first 3 to 5 years of the loan). Prepayment penalties can be several thousand dollars. For example, suppose you have a 3/1 ARM with an initial rate of 6%. At the end of year 2 you decide to refinance and pay off your original loan. At the time of refinancing, your balance is $194,936. If your loan has a prepayment penalty of 6 months' interest on the remaining balance, you would owe about $5,850.
If you are taking an adjustable rate mortgage (ARM) with a prepayment penalty make sure that the penalty is not longer than the fixed period of the ARM because some arms may go up between 5 and 6% after the initial adjustment and at that point it would be in your best interest to be able to refinance without penalty after the initial fixed period. Some states have laws specifically prohibiting pre-payment penalties. Other states have laws that limit pre-payment penalties. Be sure to ask your preferred mortgage professional about the laws in your state.
If you are taking an adjustable rate mortgage (ARM) with a prepayment penalty make sure that the penalty is not longer than the fixed period of the ARM because some arms may go up between 5 and 6% after the initial adjustment and at that point it would be in your best interest to be able to refinance without penalty after the initial fixed period. Some states have laws specifically prohibiting pre-payment penalties. Other states have laws that limit pre-payment penalties. Be sure to ask your preferred mortgage professional about the laws in your state.
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Current Mortgage Rates*
Loan Type National Average |
|
| 30-yr. fixed | 6.62% |
| 30-yr. fixed jumbo | 7.25% |
| 15-yr. fixed | 6.00% |
| 15-yr. fixed jumbo | 6.88% |
| 7/1 ARM | 6.25% |
| 5/1 ARM | 6.00% |
| 3/1 ARM | 5.75% |
| 1-yr. ARM | 5.62% |
| 1-yr. LIBOR ARM | 5.50% |
| 10/1 ARM | 8.00% |
*Mortgage Rates Updated: 08/20/2008