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Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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Current Mortgage Interest Rates

While the housing market over the past five years has been very bad, and millions of homeowners have had to deal with drastically declining home values, low interest rates on all mortgage products have helped keep the mortgage and housing industries somewhat active. Current mortgage interest rates are so low that people that are able to refinance could save hundreds of dollars per month off of their mortgage payment.

While the rates on new and refinance mortgages that are advertised are extremely low, the information provided by most mortgage lenders could be a little bit misleading. When searching online and when you Google mortgage rates, you will likely only see the mortgage rates listed that are available for the premiere borrowers. Unfortunately, the vast majority of people out there will not qualify for the lowest rates offered by the banks.

When you Google mortgage rates, there are a few different factors which could influence whether you will qualify for the lowest rates. Due to the declining housing prices, not having enough equity in the home is often one of the most difficult hurdles to overcome for people looking to refinance. Because housing prices have fallen 25% or more in most housing markets, the majority of people that have bought homes over the past 7 years actually have negative equity in their homes. Unfortunately, most banks now required that their borrowers have at least 10% equity in their homes in order to qualify for a refinance. And to take advantage of the lowest offered rates, a borrower will need at least 20% equity.

Another factor that makes it difficult for many people to qualify for the lowest current mortgage interest rates is that many borrowers do not earn enough money to support the loan payment. Over the past five years, banks have drastically tightened on their income requirements for new borrowers. While banks used to use the 40% debt-to-income ratio as the primary benchmark, most banks now want their borrowers to have a debt-to-income ratio of 28% or less. This means that many people that used to qualify for a mortgage may no longer due to the tightened requirement. At the same time, millions of people have lost their job or had to take a pay cut in order to stay employed.