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Today’s Mortgage Rates on the Decline

Mortgage rates dropped again this week for most loan types. The drop was not as much as we saw last week; however, it’s always good to see mortgage rates go down.

Today’s thirty year fixed mortgage rate dropped to 6.14%, down from 6.2%. This is a small drop compared to the volatility we’ve witnessed in previous weeks. Here’s a rundown of today’s mortgage rates.

Even though today’s drop is slight this does not mean there will not be large fluctuations in the coming months. The markets have not yet stabilized following recent financial turmoil and the outlook for improvement is not so good. The good news is that mortgage rates seem to be declining across the board. Fifteen year mortgage rates fell .07 points to 5.81%, the five year adjustable fell .21 points to 5.98%, and the one year adjustable actually went up to 5.33%.

Mortgage Rate Trends:

November 13th 2008

• 30 year fixed: 6.14%
• 15 year fixed 5.81%
• 5 year adjustable 5.98%
• 1 year adjustable 5.33%

November 6th, 2008

• 30 year fixed: 6.2%
• 15 year fixed: 5.88%
• 5 year adjustable: 6.19%
• 1 year adjustable: 5.25%

October 30th, 2008

• 30 year fixed: 6.46%
• 15 year fixed: 6.19%
• 5 year adjustable: 6.36%
• 1 year adjustable: 5.38%

October 23rd, 2008

• 30 year fixed: 6.04%
• 15 year fixed: 5.72%
• 5 year adjustable: 6.06%
• 1 year adjustable: 5.23%

Tracking the fluctuations in mortgage rates can be entertaining; however, it’s more useful to see how these changes affect your monthly payments. A free mortgage payment calculator will show you exactly how mortgage rates impact your payments. Here’s an example with a $200,000 home loan.

Mortgage Rates from 13 November:

• 30 year fixed payment: $1217
• 15 year fixed payment: $1667
• 5 year adjustable payment: $1196
• 1 year adjustable payment: $1114

Mortgage Rates from 30 October:

• 30 year fixed payment: $1258
• 15 year fixed payment: $1708
• 5 year adjustable payment: $1245
• 1 year adjustable payment: $1120

You’ll notice that over the last two weeks your monthly payment on a $200,000 loan would be $41 less per month just due to fluctuations in mortgage rates. That’s almost $500 per year! If you’re in the market to refinance your existing mortgage or take out a new loan to purchase your home your best bet right now is probably to stay away from the five year adjustable rate mortgage. Volatility in the market and our bad economy makes locking in a fixed rate a good idea for most homeowners.

Since we’re on the subject of today’s bad economy many homeowners are finding it difficult to get approved when refinancing their loans. This isn’t typically due to credit but in most cases is because they are underwater or upside down with their existing loans. Being “underwater” simply means that you owe more on your existing loan than your home is worth. If you’re in this situation you simply will not be able to refinance your home until you’re able to pay down your loan below your home’s value.

You can learn more about refinancing your existing mortgage without paying too much and getting the lowest possible rate by registering for the free mortgage videos on this site.

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