Low Mortgage Rates are Still Available

You probably have seen the headlines about the Federal Reserve increasing the Federal Funds rate in December. Chances are you also heard about mortgage rates moving higher and applications for mortgages dropping. These headlines are true but mortgage rates are still low.

Average 30 year mortgage rates today are at 3.90 percent, which is low by historical standards. On our rate table there are lenders quoting 30 year rates with points as low as 3.50 percent. The lowest rate quoted without points is at 3.875 percent, still below the current average rate. These two examples were rates listed on our Texas list of refinance rates. You can search for rates in your state by searching our rate lists at RatesORama.com.

15 year mortgage rates are also low right now. The average 15 year rate is at 3.13 percent while the lowest rate listed on our rate table for California is at 2.625 percent with 2 points. The lowest 15 year rate without points is also below the average at 2.875 percent.

Right now 5 year adjustable rate mortgages are even lower than fixed 30 year or 15 year rates. Current 5 year rates are averaging 3.39 percent but the lowest rate available on our rate list is much lower. Searching our rate list for New York, Teachers Federal Credit Union is quoting 5 year adjustable rates at 2.375 percent with no points. Not eligible to join Teachers Federal Credit Union? Third Federal Savings & Loan is quoting rates slightly higher at 2.65 percent with no points.

If you decide to get an ARM, make sure you know what the annual rate cap and lifetime rate cap is on an ARM. We are entering a cycle of higher interest rates for the next several years. 

Loan Type
Purchase    Refinance
State/City    Zip Code
Loan Amt Points FICO % Down
in 06101, All points, 740    Sort by:
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Author: Brian McKay
January 9th, 2016