30 Year Fixed Mortgage Rates | Mortgage

by ThomasGoldman

30 year fixed mortgage rates can vary considerably from time to time. At the time of writing (end of November 2009) some mortgages are nearly the lowest they have been in 18 years, and might continue to fall. There are easy-to-find websites where one can find daily average mortgage rates, overall and by US state.

The home loan being "fixed" simply means that the interest rate stays the same for the whole of the loan term (such as 30 years). Since the rate is at this time lower than usual it can be a good time to get a home loan, but be very sure to take into consideration all other aspects of the loan details, as the interest rate is not the only significant factor and can sometimes be balanced against other factors.

This type of home loan is good for people who don't like surprises and for those who are likely to stay in the same house for at least 5 years. On the other hand the rate is likely to be slightly more than on an adjustable (variable) home loan and also if the home is sold in less than 5 years there are disadvantages.

The reason for interest rates being low at the time of writing (end of 2009) include the fact that the Federal Reserve put more than a trillion dollars into mortgage-backed securities in order to decrease the interest rate and improve the housing market. While the interest rate is low, the conditions and rules for home loans are currently being applied more exactly than before, plus most of the sub-prime lenders have disappeared. This means that it is currently more difficult for those who have poor credit ratings to get a home loan.

A few sub-prime home lenders still exist and one way to find them is to ask local real estate professionals who usually keep such contacts.

A wholesale lender can usually give better rates than a retail lender but the borrower might need to get a better understanding of the terms themselves.

30 year fixed mortgage rates are low currently, so for some types of people these home loans might be a good choice for some.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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