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Best Mortgage Rates Fall Below 5%

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%.

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.

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.

To find the best rates in each market we search the databases at Bankrate.com and Interest.com.

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.

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