Current Mortgage Rates

Saturday, November 21, 2009



There are several alternatives to paying PMI monthly. One alternative is some times referred to as Tax Advantage MI. This type of MI is paid for in the interest rate. An adjustment is made to the interest rate so that you have approximately the same monthly payments but the increased interest rate means more of the payment is tax deductible. Piggyback loans, sometimes called 80/10/10 or 80/15/5 loans feature the ability to avoid private mortgage insurance (PMI) when the down payment or equity in your home is less than 20% of the value. By combining a first mortgage and a 'piggyback' second mortgage, you may reduce your monthly payments below a traditional mortgage loan with PMI. 'Piggyback' loans are available with a down payment of as little as 5 to 10% and may be used with most fixed rate and adjustable rate loans.

One point to keep in mind: Under a new federal law, you can eventually get rid of your PMI payments when you get a large amount of equity in your house. You cannot lower your interest rate unless you refinance or move. So, if you're planning to stay in the house a long time, you're probably better off with the PMI since you can eventually cancel it. Good candidates for the higher interest rate option are first-time buyers who are planning on staying in the home for less than 10 years, or the relocation buyer who moves frequently.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed4.75%
30-yr. fixed jumbo5.25%
15-yr. fixed4.25%
15-yr. fixed jumbo4.75%
7/1 ARM4.38%
5/1 ARM4.00%
3/1 ARM4.00%
1-yr. ARM3.75%
1-yr. LIBOR ARM4.38%
10/1 ARM4.62%
*Mortgage Rates Updated: 11/21/2009