Current Mortgage Rates

Thursday, August 21, 2008



One common type of debt consolidation loan is a home equity loan or line of credit. Since the loan is secured by the equity you have in your home, the lender is able to give you a lower interest rate. The amount you can borrow depends on how much equity you have; lenders will typically loan you an amount equal to 80 percent of your equity, although some will lend up to 125 percent. If you're thinking about getting a home equity loan to consolidate debt, you're usually better off staying in your house for at least a couple of years. That's because, although home equity loans offer lower interest rates than many other loans, they usually have higher closing costs. In addition, home equity loans -- like some mortgages -- may carry a prepayment penalty, which is an additional fee for getting out before a specified term. These additional costs may exceed the savings you'd get from the home equity loan's lower interest rate.

A possible advantage is that interest you pay on your equity debt consolidation loan may be tax deductible. Normally, if you add your first mortgage to a new debt consolidation loan, and the total does not exceed 100% of the appraised value of your property, the interest you pay will be fully deductible. Your tax consultant can advise you on the matter, and it's always a good idea to check with him or her.




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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