Current Mortgage Rates

Thursday, August 21, 2008



A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income - without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower(s) permanently leaves the home.

Here are a few advantages of a reverse mortgage.
  1. Remain independent. A reverse mortgage allows you to remain in your home and retain home ownership.
  2. Stay in your home. It allows you to remain in your home and retain home ownership.
  3. No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.
  4. Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free and will not affect your Social Security or Medicare benefits.
  5. Freedom and flexibility.
The money you get from a reverse mortgage is yours to use in any way you choose.

Reverse mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more.

Also, reverse mortgages are becoming more mainstream and originations of these mortgage instruments has nearly doubled in the last year, according to the National Reverse Mortgage Lenders Association. New and more innovative reverse mortgage products are on the horizon as lenders scramble to fill the needs for higher loan limits and more flexible products. As more reverse mortgage products become available in the market place, some are predicting that costs for these loans may decrease.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.62%
30-yr. fixed jumbo7.25%
15-yr. fixed6.00%
15-yr. fixed jumbo6.88%
7/1 ARM6.25%
5/1 ARM6.00%
3/1 ARM5.75%
1-yr. ARM5.62%
1-yr. LIBOR ARM5.50%
10/1 ARM8.00%
*Mortgage Rates Updated: 08/20/2008