Mortgage rates remain low and stable this week

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Mortgage rates are little changed this week, according to’s most recent survey of major lenders.

The average cost of all four major types of home loans we track are holding within a few hundredths of a percentage point of their lows for the summer and all of 2011.

Borrowers can once again thank the European debt crisis for the bargain rates we’re enjoying.

Fears that Greece or other countries may still default on their national debt has investors buying up dollar-denominated, Washington-guaranteed bonds – which includes most bonds backed by home loans.

That’s flooding the market with lots of money to lend, and pushing down the interest rate that American borrowers must pay to finance their homes.

Our July 20 survey found the average interest rate for a:

30-year, fixed-rate loan fell to 4.68% from 4.69% the previous week. That’s slightly less than what these home loans cost this time last summer, when the mid-July survey averaged 4.74%.

15-year, fixed-rate loan held at 3.82% for the second week. That’s considerably less than the average cost of 4.18% in July 2010

30-year, fixed-rate jumbo loan (for mortgages exceeding $417,000 to $729,750, depending on the city) fell to 5.17% from 5.20% the previous week. A year ago, it was 5.43%.

Five-year, adjustable-rate loan fell to 3.36% from 3.40% the previous week. A year ago, it was 4.06%.

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.

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