Current Mortgage Rates

Sunday, October 12, 2008



Different lenders have different views as to how they define a Cash Out Refinance. In general, with cash-out refinancing, you refinance your mortgage for more than you currently owe, then pocket the difference. A cash out refinance is simply a transaction that refinances an existing debt with a new debt and advances new funds to the consumer. You should look to the definition of a refinancing; equity loans may or may not be a cash out refinance; that would depend whether the equity loan is actually refinancing an existing equity loan. If it's not, then it would not meet the definition of a refinancing.

Some lenders will consider cash out to be only physical cash given to the borrower (typically lenders that deal with troubled credit), while others will consider it any money above the current principle balance of the first mortgage. Programs and guidelines may vary for different cash out refinances and how they may affect rates and terms. With a true no closing cost loan, you can refinance for any incremental drop in your interest rate. Because there is absolutely no investment in upfront costs, the savings of refinancing are immediate. In a market where you believe rates may continue to fall, it makes sense to refinance at no cost. Should interest rates decline further, you can refinance again without having to recoup the closing costs. Some borrowers refinance every few years at no cost, while keeping their initial teaser rate in an Adjustable Rate Mortgage like a 3/1 ARM.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.12%
30-yr. fixed jumbo7.62%
15-yr. fixed5.88%
15-yr. fixed jumbo7.12%
7/1 ARM6.25%
5/1 ARM6.00%
3/1 ARM5.88%
1-yr. ARM5.50%
1-yr. LIBOR ARM6.12%
10/1 ARM8.25%
40-yr. fixed7.12%
*Mortgage Rates Updated: 10/07/2008