Current Mortgage Rates

Saturday, November 21, 2009



When you're using an interest only mortgage calculator, you need to know a few facts up front to make it effective. Clearly, you need to know your loan amount. You also need to know your interest only term. Once you plug that information in, be prepared for seeing the ultimate adjustment to paying both interest and principle. This information can help you decide whether or not you want to use an interest only program or if you want to use a more traditional loan program. If you have an interest only loan already, this can also help you decide when and if you want to refinance.

An interest only mortgage offers a borrower the chance to make a much lower payment. The borrower pays only the interest due on a mortgage. No principal is being paid. As such the borrower pays a lower monthly payment. The principal on the loan is not paid off, so the loan size remains the same. An online interest only mortgage calculator can help you compare this payment with a regular mortgage payment. You can see what the monthly savings can be, and your annual savings. Your annual savings with this payment type can be several thousands dollars or more depending on your loan size and rates. Here are three quick tips to using an interest only mortgage calculator:
  • Know your interest only term. For the first part of your loan's life, you will only be making payments towards your accrued interest. Whether you have a 6 month or 10 year interest only period, use an interest only mortgage calculator to figure the payments you will have during this period.
  • Stay ready for after the adjustment. Once your interest only period ends, you will see a great increase in your monthly payment. Using an interest only mortgage calculator can fill in the blanks as far as what your new payments will be. Be sure to plug in the reduced term remaining on the loan to see what your accurate payment will be.
  • Refi or Stick It Out? An interest only mortgage calculator can let you know if you would be better off refinancing to get out of the adjustment to your payment or riding out the loan once it adjusts. This will depend on the current interest rates vs. the rates when you got the original loan.



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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. ARM3.75%
1-yr. LIBOR ARM4.38%
10/1 ARM4.62%
*Mortgage Rates Updated: 11/21/2009