How Low Can They Go: 30-Year Mortgages Now Under 4.00%

Rates are at an extreme low.  Too bad there are so many borrowers who cannot qualify or are too underwater in their existing mortgage to take advantage of this.  Freddie Mac is now showing that the average 30-year mortgage is now 3.96% for a 30-year mortgage.  The 15-year is now down to 3.26%, each with 0.8-points paid on average. 

For a little background, this is the lowest rates have been in most of our readers’ adult lives.  The last time rates were here was way back in the 1950s, but generally rates were for 20 years or 25 years rather than the traditional 30-year mortgage rates of today. 

LendingTree.com even lists that its lending network has rates of 3.75% for an APR of 3.88%.  Zillow also shows 3.75% to 3.875% as well for the 30-year mortgage products?  With rates this low, why would anyone ever want an ARM?

If you are not in negative equity in your house and have been sitting on a 5% or 6% mortgage for 2 to 5 years, don’t you owe it to yourself to see if you can refinance?  This may cost you several-thousand dollars, but you may get that back in literally a few months of savings.

JON C. OGG