Early September brings more record-low mortgage rates
Two of the most popular types of home loans reached new record lows this week, according to Interest.com’s most recent survey of major lenders.
The summer-long trend toward lower and lower mortgage rates is continuing right past Labor Day.
The average cost of jumbo loans and 30-year, fixed-rate mortgages, the most common type of home loan, fell to new all-time lows.
That means they've never been cheaper since Interest.com and its print predecessors began our weekly survey in 1985.
Fifteen-year, fixed-rate loans remained at the record low they reached last week.
Buying a home is more affordable now than it’s been in decades, thanks to rock-bottom financing and five years of declining property values. (Home prices peaked in 2006.)
Our Sept. 7 survey found the average interest rate for a:
30-year, fixed-rate loan fell slightly to 4.35% from 4.37% the previous week. It cost 4.58% about this time last year.
15-year, fixed-rate loan remained steady at 3.48%; last week, 15-year rates were also 3.48%, on average. This type of loan cost 4.06% in early September 2010.
30-year, fixed-rate jumbo loan -- mortgages that exceed $417,000 to $729,750, depending on the city -- declined to 4.86% from 4.89% last week. Last year, it cost 5.23%.
5-year, adjustable-rate loan -- home loans on which the initial interest rate remains fixed for the first five years and then changes once a year after that – increased slightly to 3.10% from 3.07%. The average rate at this time in 2010 was 3.91%.
Our database of interest rates can help you find the best deals in your area, including many that are less costly than the national averages.
You can use our home loan calculator to determine the monthly payments for the exact amount you want to borrow with this or any home loan.
It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe.