Current Mortgage Rates

Friday, November 20, 2009



When considering an ARM, you absolutely, positively must understand what rising interest rates (and, therefore, a rising monthly mortgage payment) would do to your personal finances. Only consider taking an ARM if you can answer all of the following questions in the affirmative:
  1. Is your monthly budget such that you can afford higher mortgage payments and still accomplish other financial goals that are important to you, such as saving for retirement?
  2. Do you have an emergency reserve (equal to at least six months of living expenses) that you can tap into to make the potentially higher monthly mortgage payments?
  3. Can you afford the highest payment allowed on the adjustable-rate mortgage? The mortgage lender can tell you the highest possible monthly payment, which is the payment that you would owe if the interest rate on your ARM went to the lifetime interest-rate cap allowed on the loan.
  4. If you are stretching to borrow near the maximum the lender allows or an amount that will test the limits of your budget, are your job and income stable?
  5. If you expect to be having children in the future, how much will your household expenses rise and will your income fall with the arrival of those little bundles of joy?
  6. Can you handle the psychological stress of changing interest rates and mortgage payments?
There are a myriad of mortgage products out there for the consumer to consider. Ask questions of your loan officer, and more importantly, expect your loan officer to ask questions of you. And if you can't sleep at night because you know that one day that ARM loan can adjust, just remember one thing. You can always refinance your loan when that time comes.



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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. ARM3.62%
1-yr. LIBOR ARM4.38%
10/1 ARM4.62%
*Mortgage Rates Updated: 11/20/2009