Mortgage rates at new lows on clarkhoward.com

MONEY-SAVING MOMENT: New mortgage rates are just about the lowest they've ever been. The average 30-year fixed is around 4.97 percent and the average 15-year loan is at 4.4 percent.

Remember, these kind of marquee rates will go to those who have great credit, equity in their homes and who really know how to shop around for the best deal. (Editor's note: Rates accurate as of Sept. 24, 2009.)

Now is the time to take advantage of this opportunity because the Federal Reserve will be gradually reducing its support for the housing market. That will raise mortgage rates to where they would otherwise be. In fact, the Fed's artificial support may be gone as early as March.

The good news is that even those who are upside down in their homes can take advantage of this latest interest rate bonanza. The Making Home Affordable program has a special refinance provision for those who are up to 125 percent upside down.

Meanwhile, those in ARMs that are favorable right now may be tempted to sit out these great rates. But if you think you'll stay in your house beyond the period when your rate resets, you should take advantage of these new low mortgage rates.

Just don't be one of those people who doesn't refinance because it's a royal pain. Refinancing today can put a lot of money back in your pocket in the long run. To prepare for the paperwork requirements, dig out your tax returns; your last 2-4 pay stubs; and be sure to have a clean credit report and a solid debt-to-income ratio.

What others are saying

Ex-pat
Hey where did you go? Would love to get out of this country before they build the fence to keep us in! How ironic that will be!
By Mark @ 10/22/09 12:01:03 AMreport abuse
Educated to be a slave
Awesome government education reciever here. Instead of teaching us rediculous poetry, idiotic Darwinism, math concepts most of us will never use, they could have taught us basic economics from 8th grade on. Then we could have learned how to deal with money before going into debt. Now most of us are slaves trying to find an escape hole. So sad.
By Chris @ 10/11/09 08:10:06 PMreport abuse
Making home affordable
This program can't help anyone who isn't on a Fredy Mac or Fanny Mae loan. What are the rest of us to do? Where do we turn for help or modification?
By Ernest @ 10/02/09 04:17:47 PMreport abuse
My solution?
I left the country!
By ExPat @ 10/01/09 09:53:40 AMreport abuse
No cost refi is the way to go
Back in 2003 I refinanced our 30 year fixed mortgage to a 15 year fixed. We lowered our interest rate by 1%. Our out of pocket expense was -$12, that's right, we ended up getting a refund of $12 when the dust cleared.

The banks today are in big trouble. They are desperate to get money to cover all the bad debts hidden on their balance sheets, and one easy way to do that is through mortgage refis. They grab the low hanging fruit, people with high credit scores and significant equity, and then they bend those people over the table with ridiculously high fees for the refi.

The best refi deal is one that costs you nothing. If it takes more than a year to amortize the fees associated with a refi, walk away, it's a screw-job by the bank or lending company.
By Eric @ 09/26/09 11:21:21 AMreport abuse
Am I a liar?
I was listening to Clark on 9/24 at 11:45PT. I know I heard him say there are rates for 15 yr loans at 3.45% and 30yr at 3.95%. So naturally I told my husband to jump on that because "Clark Howard said so". Well, the next day, 9/25, there are no such rates to be found by those he mentioned on his show. So what gives?
By Liar @ 09/26/09 03:44:22 AMreport abuse
Refi
Like Clark says, if you have geat credit, equity in home and know how to shop around for the best deal (check the internet for rates in your area) you can find good deals. I just refinanced from a 30 to 15 year loan at 4.25%, which was a full 1.125% lower rate than my 30 yr term. The change in interest rates was so substantial that my payments are only slightly higher. Closing costs will pay for themselves in 16 months and after that I reap the rewards of paying down loan balance much quicker.
By Mike @ 09/25/09 06:57:20 PMreport abuse
Refi
I used Lenox Financial to refi in Oct-08 and again in May-09 when rates lowered again. Great people - ask for John Heath.
By Dale @ 09/25/09 02:42:41 PMreport abuse
Refinance
The goverment doesn`t want anyone to get ahead or have anything.
By Ron @ 09/25/09 02:38:58 PMreport abuse
Refinance with LTV 125%
Can somebody recommend some institutions who really want to make money and this happened?
TIA
Chip
By Chip @ 09/25/09 02:02:53 PMreport abuse
We're here to help!
Hi folks, I'm the CEO of Really Big Bank, and we just want you to know that we're here to help - take even more of your money. Go ahead and try to refi that mortgage. We'll help you fill out reams of forms (for a fee), get appraisals (for a fee), originate the loan (for a fee), cha-cha-ching! And for you first-time buyers, our loan officers have been specially trained to make sure Really Big Bank gets most of that $8000 the government is handing out. Why do we go to these lengths to rape our customers? Because we can!

Ta-ta for now, my new yacht is waiting at the pier!
By K Lewis @ 09/25/09 12:20:35 PMreport abuse
Refinace of Home
You CAN find reputable companies for refinancing! My wife and I just finalized our refinance with MetLife Home Loans. We ended up getting what we wanted for a 10 year fixed at 4.375% and the entire process from loan app to closing took about 30 days. Keep looking! There are good guys out there.
By Hardy Lee @ 09/25/09 09:00:56 AMreport abuse
Refinance impossible
6 months and BOA still hasn't processed the refinance they offered me and then tried to disapprove 5 times for various reasons. Over 800 credit score and put 20% down, on the week I was suppose to close, BOA called and said they disapproved the loan because there were more than 15% homeowners in my neighborhood who haven't paid their HOA dues. I have never heard of this but asked for an exception like I did for all the other ridiculous reasons they tried to decline the loan. I'm the fool to keep trying with them. I need to let it go and try someone else. I just fear that there is some strategic or overall reason why so many good people are going through this and I don't want to go through it again.
By Laurie @ 09/25/09 03:23:56 AMreport abuse
Refianance
This sounds really great, but reality is not so great. We have been trying to refinance under the home afordablity plan since June of this year. We were told that if you have a Fannie Mae backed loan you can go to your nearest mortgage lender to refinance and if you have a Freddie Mac loan you have to go through your mortgage company to accomplish your refinance. Well, we have a Freddie Mac backed loan and of course our apraisal came in to low to refinance when it was 105% loan to value. The mortgage company that we were dealing with said just give a us a few more weeks to get the 125% loan to value program up and running because "you then will qualify." Well, a couple of weeks took 2 months with our mortgage company. (Other lending institutions were already refinancing at 125%). Given the amount of time it has taken our mortgage company; our apprasial has expired and we need a new one. Just so happens that the home that has been up for sale for a year in our court just sold in auction and now because it is a comp for our new apprasial we don't qualify! It just feels so unfair to pay almost $1,000.00 out of pocket for a loan orgination fee and 2 apprasials later!!!
By Angela Hodgson @ 09/25/09 02:15:21 AMreport abuse
Bankrate.com
This site is good for finding the kind of rates Clark is talking about.
By Michael @ 09/24/09 10:47:17 PMreport abuse
Refinancing
Here again Clark I have no job so digging out 2-4 pay stubs is not going to happen.
By Dave @ 09/24/09 09:33:20 PMreport abuse
Mortgage rates Lowest ever
I never understood why no one will recommend good lenders, banks and financial insitutions. I beleive you have to go underground to find them!
By cindy @ 09/24/09 08:47:46 PMreport abuse
Mortgage Rates Lowest ever
You column is good. Wish we had some banks to refer to with the lowest rates.
By Karen Bonet @ 09/24/09 08:01:25 PMreport abuse

Ex-pat

Hey where did you go? Would love to get out of this country before they build the fence to keep us in! How ironic that will be!

By Mark @ 10/22/09 12:01:03 AMreport abuse

Educated to be a slave

Awesome government education reciever here. Instead of teaching us rediculous poetry, idiotic Darwinism, math concepts most of us will never use, they could have taught us basic economics from 8th grade on. Then we could have learned how to deal with money before going into debt. Now most of us are slaves trying to find an escape hole. So sad.

By Chris @ 10/11/09 08:10:06 PMreport abuse

Making home affordable

This program can't help anyone who isn't on a Fredy Mac or Fanny Mae loan. What are the rest of us to do? Where do we turn for help or modification?

By Ernest @ 10/02/09 04:17:47 PMreport abuse

My solution?

I left the country!

By ExPat @ 10/01/09 09:53:40 AMreport abuse

No cost refi is the way to go

Back in 2003 I refinanced our 30 year fixed mortgage to a 15 year fixed. We lowered our interest rate by 1%. Our out of pocket expense was -$12, that's right, we ended up getting a refund of $12 when the dust cleared.

The banks today are in big trouble. They are desperate to get money to cover all the bad debts hidden on their balance sheets, and one easy way to do that is through mortgage refis. They grab the low hanging fruit, people with high credit scores and significant equity, and then they bend those people over the table with ridiculously high fees for the refi.

The best refi deal is one that costs you nothing. If it takes more than a year to amortize the fees associated with a refi, walk away, it's a screw-job by the bank or lending company.

By Eric @ 09/26/09 11:21:21 AMreport abuse

Am I a liar?

I was listening to Clark on 9/24 at 11:45PT. I know I heard him say there are rates for 15 yr loans at 3.45% and 30yr at 3.95%. So naturally I told my husband to jump on that because "Clark Howard said so". Well, the next day, 9/25, there are no such rates to be found by those he mentioned on his show. So what gives?

By Liar @ 09/26/09 03:44:22 AMreport abuse

Refi

Like Clark says, if you have geat credit, equity in home and know how to shop around for the best deal (check the internet for rates in your area) you can find good deals. I just refinanced from a 30 to 15 year loan at 4.25%, which was a full 1.125% lower rate than my 30 yr term. The change in interest rates was so substantial that my payments are only slightly higher. Closing costs will pay for themselves in 16 months and after that I reap the rewards of paying down loan balance much quicker.

By Mike @ 09/25/09 06:57:20 PMreport abuse

I used Lenox Financial to refi in Oct-08 and again in May-09 when rates lowered again. Great people - ask for John Heath.

By Dale @ 09/25/09 02:42:41 PMreport abuse

Refinance

The goverment doesn`t want anyone to get ahead or have anything.

By Ron @ 09/25/09 02:38:58 PMreport abuse

Refinance with LTV 125%

Can somebody recommend some institutions who really want to make money and this happened?
TIA
Chip

By Chip @ 09/25/09 02:02:53 PMreport abuse

We're here to help!

Hi folks, I'm the CEO of Really Big Bank, and we just want you to know that we're here to help - take even more of your money. Go ahead and try to refi that mortgage. We'll help you fill out reams of forms (for a fee), get appraisals (for a fee), originate the loan (for a fee), cha-cha-ching! And for you first-time buyers, our loan officers have been specially trained to make sure Really Big Bank gets most of that $8000 the government is handing out. Why do we go to these lengths to rape our customers? Because we can!

Ta-ta for now, my new yacht is waiting at the pier!

By K Lewis @ 09/25/09 12:20:35 PMreport abuse

Refinace of Home

You CAN find reputable companies for refinancing! My wife and I just finalized our refinance with MetLife Home Loans. We ended up getting what we wanted for a 10 year fixed at 4.375% and the entire process from loan app to closing took about 30 days. Keep looking! There are good guys out there.

By Hardy Lee @ 09/25/09 09:00:56 AMreport abuse

Refinance impossible

6 months and BOA still hasn't processed the refinance they offered me and then tried to disapprove 5 times for various reasons. Over 800 credit score and put 20% down, on the week I was suppose to close, BOA called and said they disapproved the loan because there were more than 15% homeowners in my neighborhood who haven't paid their HOA dues. I have never heard of this but asked for an exception like I did for all the other ridiculous reasons they tried to decline the loan. I'm the fool to keep trying with them. I need to let it go and try someone else. I just fear that there is some strategic or overall reason why so many good people are going through this and I don't want to go through it again.

By Laurie @ 09/25/09 03:23:56 AMreport abuse

Refianance

This sounds really great, but reality is not so great. We have been trying to refinance under the home afordablity plan since June of this year. We were told that if you have a Fannie Mae backed loan you can go to your nearest mortgage lender to refinance and if you have a Freddie Mac loan you have to go through your mortgage company to accomplish your refinance. Well, we have a Freddie Mac backed loan and of course our apraisal came in to low to refinance when it was 105% loan to value. The mortgage company that we were dealing with said just give a us a few more weeks to get the 125% loan to value program up and running because "you then will qualify." Well, a couple of weeks took 2 months with our mortgage company. (Other lending institutions were already refinancing at 125%). Given the amount of time it has taken our mortgage company; our apprasial has expired and we need a new one. Just so happens that the home that has been up for sale for a year in our court just sold in auction and now because it is a comp for our new apprasial we don't qualify! It just feels so unfair to pay almost $1,000.00 out of pocket for a loan orgination fee and 2 apprasials later!!!

By Angela Hodgson @ 09/25/09 02:15:21 AMreport abuse

Bankrate.com

This site is good for finding the kind of rates Clark is talking about.

By Michael @ 09/24/09 10:47:17 PMreport abuse

Refinancing

Here again Clark I have no job so digging out 2-4 pay stubs is not going to happen.

By Dave @ 09/24/09 09:33:20 PMreport abuse

Mortgage rates Lowest ever

I never understood why no one will recommend good lenders, banks and financial insitutions. I beleive you have to go underground to find them!

By cindy @ 09/24/09 08:47:46 PMreport abuse

Mortgage Rates Lowest ever

You column is good. Wish we had some banks to refer to with the lowest rates.

By Karen Bonet @ 09/24/09 08:01:25 PMreport abuse

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Sep 24, 2009 -- Mortgage rates at new lows

What others are saying