4.25% 30 Year Fixed Rate
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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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Mortgage Rates – Remain Low

Due to the current recession, many people are looking for ways to reduce their monthly expenses. One of the best ways to save money each month would be to try and refinance your current mortgage. The recession, and poor housing market, have helped keep mortgage rates low and current mortgage rates are about as low as they have ever been. Those who are able to obtain the best home mortgage rates are often able to save hundreds of dollars per month, and tens of thousands of dollars over the course of the entire loan term.

While the current mortgage rates are extremely low compared to historical averages, banks have drastically tightened their lending standards. Due to the high rate or mortgage defaults in the marketplace, banks are far more conservative with their lending practices, and borrowers will need to meet many different requirements that they never had to before.

One thing that borrowers should be aware is that they will likely need to have a lot of equity in their homes in order to qualify for the best home mortgage rates. About five years ago most banks were able to offer mortgages to borrowers even if they had no down payment. Since housing prices in most housing markets have declined, this lending practice led many people to have negative equity in their homes. This means that when a person goes into foreclosure, the banks have to take a loss on the eventual sale of the home. To help ensure that they do not lose money in the event of loan default, most banks will now require that a borrower have at least 20% equity in order to qualify for the best rates. Those with less will either not qualify for the best rates, will have to pay PMI, or will be declined for the mortgage altogether.

When looking to take advantage of the low rates, most borrowers will also need to have a very strong credit history. During the housing bubble era, most borrowers were able to get a mortgage even if they had less than average credit. Since many of these borrowers ended up defaulting on their loans, banks now want all of their borrowers to have much better credit scores. In order to qualify for the lowest rates available, you will likely need to have a score of 740 or better. If you have a lower score, you will likely pay a higher rate.