Mortgage interest rates taking a dip on clarkhoward.com

CLARKONOMICS: The federal takeover of Fannie Mae and Freddie Mac is the kind of thing that makes most people's eyes glaze over. But it does have some direct consequences for your wallet.

In short, mortgage rates are going down, down, down. If you are in the market to buy a home and you have a good credit standing, you can take out mortgage in the 5% range. If you are in an existing mortgage somewhere in the 6% range and you have some good equity, you should be able to refinance in the 5s.

The nationalization of Fannie and Freddie has both positive and negative aspects. On the plus side, it brings some relief and stability to the housing market (even though there's still too much oversupply). But on the other hand, we taxpayers are on the hook for literally trillions of dollars.

What others are saying

mortgage rates and stimulating the economy
I have an idea to stimulate the economy. We have all types of government controls so why can't the government limit the amount that a bank can charge interest based on what they are paying those who are saving. If they could only charge so many % points above what they are paying they could still make money. Why are we bailing out banks when they pay so little and charge so much? Think of the disposable income this would allow to the working class. If we didn't have to pay back $216000 on a 6% 30 year mortgage for a $100,000 home then we could buy other things and jobs would be the end result. What happened to usury laws? How did the cash for clunkers lead to jobs? How did the $250.00 given to SS recipients turn into jobs? My state taxes doubled this year because homeowners are having to make up for the loss of revenue. The working class and the want to be working again class need some common sense help.
By Annette @ 08/27/09 09:21:10 PMreport abuse
wells frago foreclosure
with al that;s happen they still are not willing to help it's customer they would rather have the house sit there than to help make arrangements to keep
By josie solis @ 12/28/08 08:00:41 AMreport abuse
Refi
Last March, my banker called me in and he refinanced my mortgage at 5 3/8%. This was beofe Fannie and Freddie went broke.
By Squeezebox @ 09/29/08 08:43:59 AMreport abuse
Rates at 5.0 and 5.5
My credit union is currently offering rates at 5% for 15 years and 5.5 for 30 years...and no points.
By Jody @ 09/23/08 10:18:12 PMreport abuse
Mortgage
I have a 70/30 loan and the large one has 5.87% and the smaller one has 7.10% interest. We have only had this loan for 2 years. We have done some remodeling and build a shop on our property, would you suggest this to be a good time for us to refi?
By Lisa @ 09/22/08 04:42:32 PMreport abuse
Interest Rates
I am a mortgage loan originator. I look at rates every day from a variety of lenders. I have not seen rates in the 5% range since last April and the rates then were not 5% but closer to 5.375%. The past six months, rates have been hovering between 5.675% to 6.75%. Not sure where Clark is looking for his rate quotes.
By Steve @ 09/22/08 04:19:51 PMreport abuse
Mortgage
The mortgage business is getting like the used car business. Rates are not down in the 5's They are still at 6 and you need to save 1 pt. to make it worth while. Stick with a bank and stay away from all the co's that offer loans that are too good to be true.
By ashley @ 09/22/08 03:27:55 PMreport abuse
interest rates
Don't know what everyone else is looking at but interest rates are going UP not down! After seeing the results of the poll where most are cautiously optimistic it seems to me that most of the population doesn't understand how much trouble we are in. Things are going to get much much worse!
By Joe Sasser @ 09/22/08 12:07:01 PMreport abuse
refi
A good rule of thumb is to lower your rate a half a percent and make your closing costs back in less than two years.
By Jim @ 09/15/08 01:27:03 PMreport abuse
Refi
Is this the best time to refinance or wait another 3-4 months. Traditionally the loans are much cheaper in any given year between Mid December to Mid March.
By Ike @ 09/12/08 04:36:55 PMreport abuse
Refi
The best way to know if you should refinance (not enough information on your post) is to use a loan calculator and put in how much you currently owe on your mortgage and the interest and you will see how much that loan is costing you. Then do the same with the new interest rate you can get. Once you do that exercise, you will be able to tell if you should refinance. You will look at how much it is costing you to refinance, if it doesn't cost ANYTHING and you get a lower rate, then it is always better to refinance. If you can shave some years off of your loan that is always good too. I refinanced a few years back to a 15year mortgage from a 30 year and I got a 4.75 mortgage. I pay double payments and my house is almost paid off. When you look at what you pay in interest it will make you sick and you want to avoid paying interest if you can. My FICO is 819 and I have NO debt other than a very small mortgage that will be paid off in 1 year. I am 55 and by the time I am 56 I will be debt free.
By Kathleen @ 09/12/08 03:49:27 PMreport abuse
no closing cost refinance loan
We currently have a 6.75% Interest Only loan and would like to refinance to a 30 year fixed. We have been quoted 6.125% for a 30 year fixed, No Closing Cost refinance loan. Is this a good rate, and should we consider refinancing to this type of loan?
By roger @ 09/12/08 02:37:01 PMreport abuse
Refi
Should I refi ? I'm at 6.375%
By Jimmy Taggart @ 09/12/08 11:46:43 AMreport abuse

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Sep 11, 2008 -- Mortgage interest rates taking a dip

What others are saying