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Friday, June 3, 2011

Fixed mortgage rates drop again - 7 weeks straight

A 30-year loan fell to 4.55 percent from 4.60 percent. The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.74 percent from 3.78 percent according to the AP.  These are the lowest rates for the year. 

While this is great if you want a mortgage, the problem is qualifying.  Most are unable to take advantage of these rates because they can't meet the strict lending requirements.  Also, those that would qualify, most likely already have refinanced last year. 

Home values are expected to keep falling until the glut of foreclosures for sale is reduced. 

If you are exploring refinancing, remember to ask about how many points you will be charged.  One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan in Freddie Mac’s survey was 0.6 and it was 0.7 for the 15-year fixed loan. The average fee for the five-year ARM and the 1-year ARM was 0.6 point.

Information was pulled from The Associated Press, Derek Kravitz

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