If you have good credit and a down payment (or some equity if you’re refinancing) there’s no reason to pay 5% or more for your mortgage.
The best deals we could find on 30-year, fixed-rate loans in 10 major cities now range from 4.875% to 4.625%.
This the first month that every single city we’ve looked at had a rate below 5%, which is a substantial improvement over the 5.125% to 4.875% range we found in our October survey.
Those results reflect the fact that the average rate on 30-year, fixed-rate mortgages fell to a record low 5.06% last week.
A year ago those loans cost an average of 6.33%, and as recently as June it was still above 6%.
We look for 30-year, fixed-rate loans with no points and fees of less than $2,000. We think that is the best mortgage for the majority of refinancings and purchases.
The best deals we found were:
Atlanta: 4.75% from AMAC (American Mortgage Advisors Corp.)
Charlotte: 4.75% from PrimeLending Services.
Chicago: 4.75% from InterBank Lending.
Cleveland: 4.65% from Third Federal Savings& Loan.
Dallas: 4.875% from American Lending Group, Inc.
Los Angeles: 4.625% from RiteWay Mortgages.com.
New York: 4.75% from The Money Store.
Pittsburgh: 4.625% from Credence Mortgage.
Seattle: 4.75% from AmericanInterbanc Mortgage.
St. Louis: 4.875% from CapWest Mortgage Corp.
The fine print: These mortgage rates are for conforming loans (less than $417,000), and for borrowers with credit scores of at least 700. For scores from 680 to 699, you’ll usually pay higher fees, up to 1% of the loan value, or a higher rate.