Mortgage rates fell this week to the lowest level on records dating to 1971, giving consumers added incentive to lock in low payment for home purchases and refinanced loans.
The average rate for 30year fixed loans sank to 4.69 percent, from 4.75 percent last week, morgage company Freddie Mac said Thursday.
That's the lowest point since Freddie Mac began tracking rates in April 1971. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.
Many Americans owe more on their mortgages than their homes are worth - often called 'under water' - and can't refinance. The Obama administration has launched programs to help borrowers refinance if they owe up to 25 percent more than their home's value and have loans owned or guaranteed by mortgage gians Freddie Mac or Fannie Mae.
About 291000 homeowners have participated as of March. Yet that's a small fraction of the nearly 15 million homeowners who are under water, according to Moody's Economycom and cannot refinance.
Despite some lenders' ads, refinancing is never free. A fee normally goes to the mortgage broker or lender. There are also fees for title insurance, a new appraisal, document processing and other charges. Often, mortgage brokers or lenders create the appearance of a 'no feee' mortgage by adding the costs to a total loan amount or by charging a higher interest rate.
Signal June 25, 2010
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