After a slight increase at the end of last month, mortgage rates have once again fallen for all home loan types. According to the Mortgage Reports, loan rates are at their lowest levels in nearly two years and very close to all-time low rates set in May 2013. For homeowners who have been looking to refinance to save money each month or get rid of their MIP payments, now is the time to act.

The average 30-year fixed mortgage rate is now at 3.59 percent, nearly a full percent lower than rates were a year ago. FHA, USDA and VA loan rates are even lower and 15-year mortgage rates can be found well under 3 percent for prime borrowers.

The housing market right now is good for both buyers and sellers, as home values continue to rise, while mortgage rates are staying low. The demand for homes has been strong in the U.S., with a third of homes selling in less than 30 days. The Pending Home Sales Index from the National Association of Realtors shows that supply of homes is at 4.4 months, which is defined as a seller’s market.

Fortunately buyers can get home loans at low rates without having to put a ton of money down. Mortgage loans have down payments as low as 5 percent for fixed rate loans and 3.5 percent for FHA loans. For those who qualify for a VA loans, no down payment loans are available as well.

For current homeowners looking to lower their monthly payments, refinancing at today’s low rates is a smart idea. For those who have some equity in their homes, refinancing from an FHA to a conventional loan can save you money on your monthly payments, and get rid of MIP. If you owe more than your home is worth, you may qualify for a HARP refinance, which Freddie Mac shows can save homeowners over 30 percent annually.


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photo of real estate agent Steve Southerland
Steve Southerland
Steve is the founder of Southerland Real Estate. And while he takes pride in having turned his dream into a robust reality, all that takes a back seat to the customer care he provides.