Current Mortgage Rates

Thursday, August 28, 2008



Finding the best home equity loan can save you thousands of dollars - at least.

In order to get the best loan,
  • Shop around. Try a variety of sources (banks, brokers, and credit unions).
  • Manage your credit score and make sure your credit reports are accurate.
  • Ask your network of friends and family who they recommend.
  • Compare your offers to those found on websites and advertisements.
You can protect yourself against losing your home to inappropriate lending practices. Here's how: Don't:
  • Agree to a home equity loan if you don't have enough income to make the monthly payments.
  • Sign any document you haven't read or any document that has blank spaces to be filled in after you sign.
  • Let anyone pressure you into signing any document.
  • Agree to a loan that includes credit insurance or extra products you don't want.
  • Let the promise of extra cash or lower monthly payments get in the way of your good judgment about whether the cost you will pay for the loan is really worth it.
  • Deed your property to anyone.
First consult an attorney, a knowledgeable family member, or someone else you trust. As attractive as a HEL or HELOC may be, ask yourself if you should be tapping into your home equity at all - keep in mind you put your home at risk of foreclosure if you can't make required payments. And consider whether there are less expensive ways to borrow money. For instance, it may make more sense to do a cash-out refinancing, which increases your mortgage, potentially lowers your rate and pays you the difference between your old and new mortgage in a lump sum.

Second, if your reason for taking out a loan or line of credit is to help pay for years of living above your means and you haven't taken steps to rein in your spending, you shouldn't put your home at risk.

Lastly, if you're considering a HEL or HELOC for the tax break, think carefully. The interest deduction is not a dollar-for-dollar reduction of your taxes, just a percentage. Plus, if your adjusted gross income is high, the phase-out for itemized deductions may kick in, preventing you from taking a full deduction, if any at all.




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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 ARM6.00%
5/1 ARM6.12%
3/1 ARM5.75%
1-yr. ARM5.75%
1-yr. LIBOR ARM5.38%
10/1 ARM7.88%
*Mortgage Rates Updated: 08/27/2008