Late September brings mortgage rates to new all-time lows

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Three of the most popular types of home loans hit new all-time lows this week, according to Interest.com’s most recent survey of major lenders.

The average cost of 30-year fixed, 15-year fixed and five-year adjustable home loans have not been this cheap since Interest.com and its print predecessors began tracking those interest rates in 1985.

The cost of 30-year jumbo loans -- mortgages that exceed $417,000 to $729,750, depending on the city – rose slightly this week. But it reached a new all-time low of 4.83% just last week.

Incredibly cheap financing is one reason home sales picked up in August to an annualized selling rate of just over 5 million houses, condominiums, townhomes and co-ops.

The best deals, like the one being offered in 24 states by Absolute Mortgage Co., are charging just 3.875% with no points.

Then there's the 15-year, fixed-rate loan Habitat Financial is selling in Oregon and Washington for only 3.25% with no points.

Our Sept. 21 survey found the average interest rate for a:

30-year, fixed-rate loan fell to 4.29% from 4.32% the previous week. It cost 4.50% about this time last year.

15-year, fixed-rate loan dropped from 3.44% last week to 3.42%. This type of loan cost 3.96% in late September 2010.

30-year, fixed-rate jumbo loan increased slightly to 4.85% from 4.83% last week. Last year, it cost 5.17%.

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 -- fell to 3.05% from 3.07%. The average rate at this time in 2010 was 3.71%.

Our database of mortgage 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 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.

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