Current Mortgage Rates

Thursday, December 04, 2008



Before considering the second mortgage you should have a detailed plan for the home improvement you intend to carry out. In this plan you should include both the calculated and estimated costs for the improvements, but also the value improvements you are expecting. In a later stage you will in many cases be required to present this information to the lender, therefore you should also get estimates and quotes from contractors.

Fundamental questions in the calculation and the evaluation of the different options are:
  • Are the improvements you plan to undertake increasing the value of your home more than the loan you apply for?
  • What will the monthly payments be?
  • What are the tax implications? Possible tax deductions? Protect yourself?nd your equity:
  • Don't take out a loan made solely on the equity value and not on your ability to make the monthly payments.
  • Don't sign anything that has blank spaces.
  • Don't borrow more than you need. Equity can be your greatest asset in your next home purchase.
  • Don't take out a loan from an unknown door-to-door salesperson.
  • Don't consolidate your bills by using your home as collateral; try to use other means to consolidate.
  • Don't judge by the monthly payments alone? Consider the total cost.
  • Don't yield to high-pressure sales tactics.
  • Don't sign forms written in a language that you don't understand.
  • Don't sign a contract if it is not what you expected. Always be prepared to walk away!
  • Don't rush to sign. If the offer is good today, it should be good tomorrow.
Remember that when it comes time to sell your home, it's never a good idea to have the biggest or most expensive house in the neighborhood, because it will be more difficult to sell if the asking price is higher than other homes. The same principal applies when remodeling. If you make your home significantly larger or more expensive than others in the neighborhood, your likelihood of recovering your costs declines. So, think carefully before tapping the equity in your home to make improvements. If you plan to sell in the next five or so years, you may recover only a small percentage of the money you put into your home improvements. You could even end up owing more to the bank than you can get for your house when you sell it.



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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed5.62%
30-yr. fixed jumbo7.50%
15-yr. fixed5.38%
15-yr. fixed jumbo7.25%
7/1 ARM6.12%
5/1 ARM5.88%
3/1 ARM5.88%
1-yr. ARM6.62%
1-yr. LIBOR ARM6.12%
10/1 ARM6.25%
40-yr. fixed6.88%
*Mortgage Rates Updated: 12/04/2008