Current Mortgage Rates

Monday, October 13, 2008





Discount points are fees paid to a lender at closing in order to lower your mortgage interest rate. While buying points is sometimes a good decision, many times the purchase costs you more than it saves.

You should pay zero or close to zero points if:
  • You plan to stay in your home for less than 3 - 4 years
  • You think you will refinance your loan within the next few years
  • You are applying for an adjustable rate mortgage
  • You should consider paying 1 or more points if:
  • You plan to stay in your home for more that 5 years
  • You plan to keep your property as an investment after you move
  • You don't plan on refinancing in the near future
Paying discount points for your home mortgage refinance loan can save you money if you plan on keeping the home for a long time. You can calculate your potential savings from paying discount points and how long it will take you to recoup the expense with a simple online mortgage calculator. The main disadvantage of paying discount points is that you'll have to come up with the cash prior to closing and if you don't stay in your home long enough you may not recoup the expense.

To calculate if paying discount points is beneficial for you, divide the amount you pay by how much lower your mortgage payment will be. This will tell you how long it will take to recoup paying discount points on your home mortgage refinance loan.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.25%
30-yr. fixed jumbo7.62%
15-yr. fixed5.88%
15-yr. fixed jumbo7.12%
7/1 ARM6.62%
5/1 ARM6.38%
3/1 ARM6.25%
1-yr. ARM5.88%
1-yr. LIBOR ARM6.25%
10/1 ARM8.38%
40-yr. fixed7.12%
*Mortgage Rates Updated: 10/12/2008