Mortgage rates at all-time lows on clarkhoward.com

MONEY-SAVING MOMENT: With mortgage rates at all-time lows, now may be a great time to refinance -- if you meet new stringent criteria.

The national average for 15-year mortgages is 4.1 percent, according to The Los Angeles Times. (Editor's note: Figures accurate as of June 11, 2010.) That means some people are getting in the upper 3s fixed for 15 years! Those who want to avoid closing costs might be getting in the low 4s. Meanwhile, the national average for 30-year mortgages is around 4.75 percent.

With the purchasing market having fallen off a cliff, lenders are eager to get you in a refi to drum up some business. They're desperate for those origination fees.

Right now, there's a bigger spread than normal between 15- and 30-year rates. You'll still need good credit; you'll have to intend to stay in your home to make a refi worthwhile; and you must appraise out.

Because of new stringent rules, if you don't have a lot of equity in home, appraisers are no longer erring on the high side for property valuations. That makes it much harder to qualify.

If you can, though, this is a phenomenal opportunity. It's also an ironic one because interest rates were trending higher before the European financial crisis of 2010.

Could mortgage rates go lower? No one knows.

But when world markets are unstable, foreigners pour their money into our debt instruments because we are still the safest place to hang with your dough. So that suggests it's possible for mortgage rates to drop further, but we'll have to wait and see...

What others are saying

Is there any answers to these comments
This is a section for comments not questions so where do people get their questions answered? Does Clark look at these comments that are more like questions.....
By Radonna @ 08/31/10 11:24:51 AMreport abuse
Wells Fargo call for refi
Recently found a message on my machine from Wells Fargo asking me to consider a "Free Rate Drop" which, he said, works like a free refinancing. Presently I have (with W. F.) a 8-year old, 30-year $185K loan @ 5.79%. About $400 from the monthly payment goes to the principal. If what they said is true, that I can refinance the loan for 5%, it will drop my monthly payment by $200, but I start over with most of the payment going toward the interest for the next 5-6 years. I hear Clark keep saying that we should refinance without closing costs and fee; that is nice and lovely; however, none of the banks I talked to offers such deals. Most of banks has as low as $2500 up to $6000 in fees. Any words of wisdom regarding of what I should do?
By Jimm Bo @ 08/17/10 01:43:52 PMreport abuse
Refi
I understand that when you're in the process of shopping to refinance your mortgage, there's around a two or three week window that's open with the credit companies. Your credit score doesn't keep going down with each credit request because they figure you're shopping for the best deal. I heard that's true when shopping for cars too. Is that in fact the case??
By John L. @ 08/16/10 08:37:46 PMreport abuse
Could requesting refi quote hurt/effect our credit score ?
I'm trying to see if quote or applying for refi our mortgage would hurt the credit score. My husband fears the effect of the out come to his job(security clearance). I just want to know for the future references. Please advise.
By Yuka @ 07/17/10 11:49:20 AMreport abuse
refinancing
I have 17 years to pay on a 25 year mortgage. Interest rate is 6.625%. My payment is $1,092.86. I would like to pay off my home early & have been paying an extra $100. on the principle monthly. What do you advise?
By Teri Besch @ 07/16/10 02:25:17 PMreport abuse
Home Refinance
I have a 1st mortgage loan of $216K and a 2nd for $223K. Wells Fargo is talking to me about refinancing, but when I received the Good Faith, the loan was going to be $218K with an interest rate of 5.9. My current interest rate is 6.25. I don't think this is a worthwhile refinance. My credit scores average 750. There is a property in our 32 home n'hood which just got a full price offer of $267K. I wonder if it's better for me to sit and wait and see what this comp will do for an appraisal on my own property. Very desireable n'hood next to Historic Roswell. I might be able to refinance my 1st and 2nd into 1 mortgage.

Any suggestions?
By Denise @ 07/09/10 08:20:13 AMreport abuse
Loan Modification
Please update your last article on
Nov 09, 2009 -- Mortgage modification may not impact credit score -- for now"
I just accepted the Chase offer for a Loan Mod.,Fixed 4%, forgiving $88,000 so I won't be upside anymore.
Will it affect my credit score?
IRS said I will have to pay taxes on that $88,000 of debt forgiveness. OUCHIE!
By Marcia @ 06/27/10 09:26:51 PMreport abuse
BofA/M-L merger bad for investment refinancing
I can personally second the BofA comment, but from a different angle.I had gone through M-L to refinance some investment property. My credit score was above 800, I had assets with M-L to more than cover the mortgage amounts, but at the last minute, they turned me down due to "issues" with the HOA in the townhome community where my property was located.
I checked with the management company and they disagreed with the BofA/M-L comments. Yes, I got refinancing through another major bank without difficulty, but this is not the first time that M-L has let me down. I think our 30-year financial marriage is over!
By Tokyo Taka @ 06/21/10 07:44:46 PMreport abuse
Stay away from BoA for Refinances
Bank of America bought our loan from Countrywide, we tried to do a HARP re-fi with BoA back In April 2009, when we were still required to do HARP refi's with the current mortgage holder. They drug things out until January 2010 when they dropped our loan with no warning because the value of our home had dropped to low, according to their online estimates. We appealed to the CEO, because we weren't even given a chance to have an appraisal done and had been given pathetic levels of customer service. The loan application was reinstated in March 2010 under the original terms and we were assured it would proceed much more quickly, it's now June 2010 and I haven't even been given a list of required documentation yet. BOA is Pathetic. A few weeks ago we started working with a local broker who is getting us a lower rate and has made more progress in our loan in a few weeks than BoA has in 14 months.
By Ryan @ 06/21/10 04:21:04 PMreport abuse
Can I refinance a non-primary residence home?
Due to work relocation, have to move and placed my home as a rental and currently renting in my new location. Cna I refinance with the same low rates when I am not living in my home? Thanks.
By Jeff SAV GA @ 06/21/10 12:12:23 PMreport abuse
pay of $19,000 left on mortgage with heloc?
My current mortgage balance is $19,000 - interest rate 6.25%. I plan to pay it off in about a year. Is it worth the risk of rising interest rates to pay it off with my heloc - current interest rate of 4%.
By Holly @ 06/21/10 11:37:04 AMreport abuse
Broker Suggestions
I suggest going with a smaller community bank (not a credit union). They are less likely to sell off the servicing to a mega banks such a BOA and are more flexible with the stupid little problems that crop up.
By vw @ 06/21/10 11:36:24 AMreport abuse
Broker Suggestions
Kenny, ask your friends for referrals. This is how I build my business - by doing good work and having my clients are willing to refer me to their friends.
By Broker Nancy @ 06/21/10 11:31:46 AMreport abuse
Broker Suggestions
I'm looking to start the process of a refi but am getting a little overwhelmed with with mortgage broker to contact. Existing mortgage was recently purchased by Bank of America and I'd rather go with someone else. Anyone have any suggestions?
By Kenny @ 06/16/10 12:44:10 PMreport abuse
refi
Thank you for the advice. Any suggestions on credit unions that make those kinds of loans?
By chris @ 06/15/10 05:08:14 PMreport abuse
Ditch the banks
Chris- you have an awesome credit rating and good track record. Ditch the bank and go with a credit union. Better rates, better service!
By Karalee @ 06/15/10 04:49:30 PMreport abuse
mortgage rates
My credit rating is 790 and I have an existing interest only loan on a 2nd home. I want a 15 year fixed but my bank will only go for a 30 at 6%. We will need to borrow about $1 mil so it will be a jumbo. Can you recommend a company more competitive. I am looking for something in the 4 to 5% range. Never missed a payment on anything in my life.
By chris @ 06/15/10 03:42:15 PMreport abuse
refi
we refinanced our 30yr in march, went from 5.75 to 4.75% it cost us $3400 for everything. Our appraisal actually came in higher than I thought. The big problem was the amount of paperwork they wanted. we had refinanced in 2002 on another property and yes there were tons of forms to sign, but a simple credit check and W2 was all they needed. Now they acted like we were applying for a FHA loan when we refinanced our conventional 30yr. Even with credit scores in the high 800's they wanted tax records for 3 years (from the IRS) bank statements, insurance policies, check stubs, tons and tons of personal information which they used not just to qualify us, but to sell our loan to bank of america for processing. We even had to start escrow for our taxes and insurance to avoid a large "waiver fee"....I can see being more careful on mortgages and looking closer at borderline borrowers but we have no debt, own another house completely, have over 20% equity and credit scores in the high 800's and we were put under a microscope...i'm thankful we wont be doing it again for a long while.
By Dave @ 06/15/10 12:01:43 PMreport abuse
Low Rates
The rates seem to be set by demand and the mopvers and shakers. No demand equals low rates. High demand will equate to high rates just wait and see. And how is it that people that cannot afford their mortgage and have ruined their credit can go to the World Congress Center and get rate as low as 2 percent? Shouldn't the lowest risk borrowers be getting the best rates? That is what Clark preaches right?
By Bob Bummer @ 06/15/10 12:56:04 AMreport abuse
mortgages all time low
If mortgages interest rates start to go up increased forclosures and increased devalue of property and increased employment.
By cndy @ 06/14/10 11:12:29 PMreport abuse
Another reason
There is another reason to refi at these low rates, especially if you have quite a bit of equity and enough assets to pay off the mortgage if you wanted to. When rates shoot up later this year or early next year, these mortgages will be a huge burden on the banks holding them. They will take huge discounts, maybe 25%, just to clear them off of their books. If you owed $100k, you might be able to pay off the note for just $75K.

This actually happened in the late '70s when banks went begging for people to pay off their 5% mortgages as interest rates shot to the moon.
By Joe @ 06/14/10 04:31:39 PMreport abuse

Is there any answers to these comments

This is a section for comments not questions so where do people get their questions answered? Does Clark look at these comments that are more like questions.....

By Radonna @ 08/31/10 11:24:51 AMreport abuse

Wells Fargo call for refi

Recently found a message on my machine from Wells Fargo asking me to consider a "Free Rate Drop" which, he said, works like a free refinancing. Presently I have (with W. F.) a 8-year old, 30-year $185K loan @ 5.79%. About $400 from the monthly payment goes to the principal. If what they said is true, that I can refinance the loan for 5%, it will drop my monthly payment by $200, but I start over with most of the payment going toward the interest for the next 5-6 years. I hear Clark keep saying that we should refinance without closing costs and fee; that is nice and lovely; however, none of the banks I talked to offers such deals. Most of banks has as low as $2500 up to $6000 in fees. Any words of wisdom regarding of what I should do?

By Jimm Bo @ 08/17/10 01:43:52 PMreport abuse

Refi

I understand that when you're in the process of shopping to refinance your mortgage, there's around a two or three week window that's open with the credit companies. Your credit score doesn't keep going down with each credit request because they figure you're shopping for the best deal. I heard that's true when shopping for cars too. Is that in fact the case??

By John L. @ 08/16/10 08:37:46 PMreport abuse

Could requesting refi quote hurt/effect our credit score ?

I'm trying to see if quote or applying for refi our mortgage would hurt the credit score. My husband fears the effect of the out come to his job(security clearance). I just want to know for the future references. Please advise.

By Yuka @ 07/17/10 11:49:20 AMreport abuse

refinancing

I have 17 years to pay on a 25 year mortgage. Interest rate is 6.625%. My payment is $1,092.86. I would like to pay off my home early & have been paying an extra $100. on the principle monthly. What do you advise?

By Teri Besch @ 07/16/10 02:25:17 PMreport abuse

Home Refinance

I have a 1st mortgage loan of $216K and a 2nd for $223K. Wells Fargo is talking to me about refinancing, but when I received the Good Faith, the loan was going to be $218K with an interest rate of 5.9. My current interest rate is 6.25. I don't think this is a worthwhile refinance. My credit scores average 750. There is a property in our 32 home n'hood which just got a full price offer of $267K. I wonder if it's better for me to sit and wait and see what this comp will do for an appraisal on my own property. Very desireable n'hood next to Historic Roswell. I might be able to refinance my 1st and 2nd into 1 mortgage.

Any suggestions?

By Denise @ 07/09/10 08:20:13 AMreport abuse

Loan Modification

Please update your last article on
Nov 09, 2009 -- Mortgage modification may not impact credit score -- for now"
I just accepted the Chase offer for a Loan Mod.,Fixed 4%, forgiving $88,000 so I won't be upside anymore.
Will it affect my credit score?
IRS said I will have to pay taxes on that $88,000 of debt forgiveness. OUCHIE!

By Marcia @ 06/27/10 09:26:51 PMreport abuse

BofA/M-L merger bad for investment refinancing

I can personally second the BofA comment, but from a different angle.I had gone through M-L to refinance some investment property. My credit score was above 800, I had assets with M-L to more than cover the mortgage amounts, but at the last minute, they turned me down due to "issues" with the HOA in the townhome community where my property was located.
I checked with the management company and they disagreed with the BofA/M-L comments. Yes, I got refinancing through another major bank without difficulty, but this is not the first time that M-L has let me down. I think our 30-year financial marriage is over!

By Tokyo Taka @ 06/21/10 07:44:46 PMreport abuse

Stay away from BoA for Refinances

Bank of America bought our loan from Countrywide, we tried to do a HARP re-fi with BoA back In April 2009, when we were still required to do HARP refi's with the current mortgage holder. They drug things out until January 2010 when they dropped our loan with no warning because the value of our home had dropped to low, according to their online estimates. We appealed to the CEO, because we weren't even given a chance to have an appraisal done and had been given pathetic levels of customer service. The loan application was reinstated in March 2010 under the original terms and we were assured it would proceed much more quickly, it's now June 2010 and I haven't even been given a list of required documentation yet. BOA is Pathetic. A few weeks ago we started working with a local broker who is getting us a lower rate and has made more progress in our loan in a few weeks than BoA has in 14 months.

By Ryan @ 06/21/10 04:21:04 PMreport abuse

Can I refinance a non-primary residence home?

Due to work relocation, have to move and placed my home as a rental and currently renting in my new location. Cna I refinance with the same low rates when I am not living in my home? Thanks.

By Jeff SAV GA @ 06/21/10 12:12:23 PMreport abuse

pay of $19,000 left on mortgage with heloc?

My current mortgage balance is $19,000 - interest rate 6.25%. I plan to pay it off in about a year. Is it worth the risk of rising interest rates to pay it off with my heloc - current interest rate of 4%.

By Holly @ 06/21/10 11:37:04 AMreport abuse

Broker Suggestions

I suggest going with a smaller community bank (not a credit union). They are less likely to sell off the servicing to a mega banks such a BOA and are more flexible with the stupid little problems that crop up.

By vw @ 06/21/10 11:36:24 AMreport abuse

Kenny, ask your friends for referrals. This is how I build my business - by doing good work and having my clients are willing to refer me to their friends.

By Broker Nancy @ 06/21/10 11:31:46 AMreport abuse

I'm looking to start the process of a refi but am getting a little overwhelmed with with mortgage broker to contact. Existing mortgage was recently purchased by Bank of America and I'd rather go with someone else. Anyone have any suggestions?

By Kenny @ 06/16/10 12:44:10 PMreport abuse

refi

Thank you for the advice. Any suggestions on credit unions that make those kinds of loans?

By chris @ 06/15/10 05:08:14 PMreport abuse

Ditch the banks

Chris- you have an awesome credit rating and good track record. Ditch the bank and go with a credit union. Better rates, better service!

By Karalee @ 06/15/10 04:49:30 PMreport abuse

mortgage rates

My credit rating is 790 and I have an existing interest only loan on a 2nd home. I want a 15 year fixed but my bank will only go for a 30 at 6%. We will need to borrow about $1 mil so it will be a jumbo. Can you recommend a company more competitive. I am looking for something in the 4 to 5% range. Never missed a payment on anything in my life.

By chris @ 06/15/10 03:42:15 PMreport abuse

we refinanced our 30yr in march, went from 5.75 to 4.75% it cost us $3400 for everything. Our appraisal actually came in higher than I thought. The big problem was the amount of paperwork they wanted. we had refinanced in 2002 on another property and yes there were tons of forms to sign, but a simple credit check and W2 was all they needed. Now they acted like we were applying for a FHA loan when we refinanced our conventional 30yr. Even with credit scores in the high 800's they wanted tax records for 3 years (from the IRS) bank statements, insurance policies, check stubs, tons and tons of personal information which they used not just to qualify us, but to sell our loan to bank of america for processing. We even had to start escrow for our taxes and insurance to avoid a large "waiver fee"....I can see being more careful on mortgages and looking closer at borderline borrowers but we have no debt, own another house completely, have over 20% equity and credit scores in the high 800's and we were put under a microscope...i'm thankful we wont be doing it again for a long while.

By Dave @ 06/15/10 12:01:43 PMreport abuse

Low Rates

The rates seem to be set by demand and the mopvers and shakers. No demand equals low rates. High demand will equate to high rates just wait and see. And how is it that people that cannot afford their mortgage and have ruined their credit can go to the World Congress Center and get rate as low as 2 percent? Shouldn't the lowest risk borrowers be getting the best rates? That is what Clark preaches right?

By Bob Bummer @ 06/15/10 12:56:04 AMreport abuse

mortgages all time low

If mortgages interest rates start to go up increased forclosures and increased devalue of property and increased employment.

By cndy @ 06/14/10 11:12:29 PMreport abuse

Another reason

There is another reason to refi at these low rates, especially if you have quite a bit of equity and enough assets to pay off the mortgage if you wanted to. When rates shoot up later this year or early next year, these mortgages will be a huge burden on the banks holding them. They will take huge discounts, maybe 25%, just to clear them off of their books. If you owed $100k, you might be able to pay off the note for just $75K.

This actually happened in the late '70s when banks went begging for people to pay off their 5% mortgages as interest rates shot to the moon.

By Joe @ 06/14/10 04:31:39 PMreport abuse

Listen Live:

Clark On Demand:

Clark's Advice:

Consumer Action Center:

Quick Links:

Clark Media:

Call The Show:

Jun 14, 2010 -- Mortgage rates at all-time lows

What others are saying