U.S. Mortgage Rates Fall To New Records; Refinance Mortgage Rates Drop

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via: TheMortgageReport.com by Dan Green

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Mortgage rates fell this week -- again -- as the biggest refinance boom since last decade continues. Freddie Mac reports that the average 30-year fixed rate mortgage rate nationwide fell four basis points to 3.62%, and that the average 15-year fixed rate mortgage rate fell to 2.89%.

 

Mortgage Rates On A 3-Year Slide

Freddie Mac's survey is collected from more than 125 banks around the country with each bank reporting both its "going mortgage rate" as well as any accompanying discount points required to get that rate. The survey showed that banks offering the 3.62% mortgage rate are charging, on average, 0.8 discount points.

Discount points are a one-time closing cost. 1 discount point is equal to one percent of your loan size.

So, using this week's survey as an example, if you are a borrower in Marin County, California; or Fairfax, Virginia, and you are borrowing up to the local conforming loan limit of $625,500, to account for your 0.7 discount points, you should expect to bring an additional $4,379 to closing, or to have that amount "rolled in" to your mortgaged amount for you.

If your loan size is smaller than $625,500, however, your discount points fee will be smaller. Homeowners borrowing at the Dallas, Texas local loan limit of $417,000, for example, would pay just $2,919.

Not everyone will want to pay discount points, however, and the good news is that you don't have to. Mortgages without discount points are always available from banks -- they're just not offered at the 3.62% mortgage rate.

Get a mortgage rate quote with and without discount points to compare your costs and options.

 

15-Year Fixed Rate Mortgage Rate Falls To 2.89%

Freddie Mac's weekly mortgage rate survey showed the following national numbers :

• 30-year fixed rate mortgage : 3.62% with 0.8 discount points
• 15-year fixed rate mortgage : 2.89% with 0.7 discount points
• 5-year adjustable rate mortgage : 2.79% with 0.6 discount points

Note that the Freddie Mac mortgage rate survey does not differentiate between a purchase money mortgages and refinances. Some lenders offer slightly lower-than-average rates on a purchase transaction, and slightly higher-than-average for "special" refinance types including the HARP refinance program or loans for investors with more than 4 properties financed. Mortgage pricing policies vary from bank-to-bank.