Current Mortgage Rates
Thursday, August 21, 2008
There are many reasons why people consider refinancing home mortgages, ranging from wanting to withdraw their cash in equity to reducing their interest rate to paying off credit card balances to lowering their payments. Some reasons are wise while others are not. Everyone has to review their own situation and decide what is best. But here are three good reasons when it would be "wise."
To Get A Better Fixed Interest Rate. When people are ready to buy a house, they have to accept the interest rates that are available at the time. However, as time goes by, it may be possible to get a better interest rate. There is more than one reason why a substantially lower rate may now be available. If bad credit was a problem when the loan was issued but the credit history has now improved, then refinancing home mortgages would definitely be a wise decision. A bankruptcy in the past or simply poor payment history is enough to cause potential home buyers to only qualify for a bad credit mortgage. But with consistent effort to turn things around, credit histories can go from bad to good, thus qualifying for a lower interest rate.
Consider the tax benefits: If you itemize your tax deductions, the interest you pay on you mortgage or a home equity loan may be deductible. Refinancing your mortgage and taking cash out or borrowing through a home equity loan or a second mortgage may provide the money to pay off higher rate loans, such as credit cards or auto loans, and provide a tax deduction as well.
To Get A Better Fixed Interest Rate. When people are ready to buy a house, they have to accept the interest rates that are available at the time. However, as time goes by, it may be possible to get a better interest rate. There is more than one reason why a substantially lower rate may now be available. If bad credit was a problem when the loan was issued but the credit history has now improved, then refinancing home mortgages would definitely be a wise decision. A bankruptcy in the past or simply poor payment history is enough to cause potential home buyers to only qualify for a bad credit mortgage. But with consistent effort to turn things around, credit histories can go from bad to good, thus qualifying for a lower interest rate.
Consider the tax benefits: If you itemize your tax deductions, the interest you pay on you mortgage or a home equity loan may be deductible. Refinancing your mortgage and taking cash out or borrowing through a home equity loan or a second mortgage may provide the money to pay off higher rate loans, such as credit cards or auto loans, and provide a tax deduction as well.
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Does Refinancing at a Higher Rate Ever Make Sense?
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Does Refinancing at a Higher Rate Ever Make Sense?
Refinance With Current Lender?
Refinancing into a Bigger Loan?
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No Cost Refinancing?
What is a Mortgage Refinance?
What is cash-out refinancing?
When Does Refinancing Really Pay?
Is a Refinancing a Good Deal if it Saves Money?
Should I Consolidate and How?
Does a Prior Refinance Affect This One?
Why is This Refinance 'Cash-Out'?
Mortgage Refinance with No Closing Cost
Should You Rescind Your Refinance?
How to refinance a loan for bad credit
No Cost Refinancing?
What is a Mortgage Refinance?
What is cash-out refinancing?
When Does Refinancing Really Pay?
Is a Refinancing a Good Deal if it Saves Money?
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Refinancing
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- When Does Refinancing Really Pay
- Is a Refinancing a Good Deal if it Saves Money
- What Goes Into the Refinance Decision
- No Cost Refinance Make Sense
- Should I Follow the APR on a Cash-Out Refinance
- Does Refinancing at a Higher Rate Ever Make Sense
- Refinance With Current Lender
- Refinancing into a Bigger Loan
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Current Mortgage Rates*
Loan Type National Average |
|
| 30-yr. fixed | 6.62% |
| 30-yr. fixed jumbo | 7.25% |
| 15-yr. fixed | 6.00% |
| 15-yr. fixed jumbo | 6.88% |
| 7/1 ARM | 6.25% |
| 5/1 ARM | 6.00% |
| 3/1 ARM | 5.75% |
| 1-yr. ARM | 5.62% |
| 1-yr. LIBOR ARM | 5.50% |
| 10/1 ARM | 8.00% |
*Mortgage Rates Updated: 08/20/2008