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Kelly Said:

"Bankrate.com lists 15 year fixed mortgage rates for today 2/6 at 4.95%. Why can't I get that rate from

We Answered:

The 4.95% is the APY rate offered by larger banks to borrowers with near perfect credit. APY means the interest rate without figuring in all of their fees. With fees added in, your true rate, APR, may be closer to 5.3%. Some companies, such as Countrywide, claim to have no upfront costs, thus lowering your APR to near the APY.

Remember that the lower your credit score, the larger your risk and the higher your interest rate will be. What I've also found is that local banks tend to feel that they have you at a disadvantage and will charge more than larger banks.

Doing an internet search for larger mortgage companies may help you to locate a lower rate.

Leslie Said:

If I refinance my 30 year mortgage to a 15 year mortgage, do I get money back from my initial loan?

We Answered:

You would be starting with the principal balance you have now, and paying the rest of it down quicker. But that would only make sense if you can get a lower interest rate, factoring in all closing costs. So you have to compare making extra payments on your existing loan to pay down principal faster (end existing loan early) vs. total amount for closing costs and payments to refi. You also have to consider whether you want to be locked into higher payments (refi), or just pay extra principal when you have extra money (existing loan).

When I bought my home with 30 year mortgage in 2002 and refi'd down to 20 years in 2005 at lower interest, it chopped 7 years off of my original loan, saving saving $62,000 of interest, for an extra $30/month.

Claudia Said:

How far will 30, 20, 15 year mortgage Rates fall to? When will this happen?

We Answered:

No one can answer this question. If they say they can, they're lying. Mortgage rates are a little bit like the stock market. They're affected by lots of factors, and most of those factors can't be accurately predicted.

Rates are quite low now. It's safe to say that at some point, they're going to go up. Whether they go down a little more sometime, no one can say. If you're thinking of buying a house, and can afford a decent down payment, now is a really good time. Prices are low, mortgage rates are low, and in the USA there's a tax credit too.

Darrell Said:

A question about my 15 year fixed rate mortgage?

We Answered:

Because your loan is amortized over 15 years, the interest and principle payments are spread out on a payment plan so that the full interest and principle is paid off in 15 years.

Interest makes up for a large percentage of your payments when you get a new fully amortized mortgage. This is called front-loading of the interest. If you have a $1,000 payment, $950 might be interest at first. As time goes on and you make more payments, slowly the ratio changes and the amount of principle you pay goes up and the amount of interest you pay goes down - by the time you are in your 14th or 15th year a large percentage of your payment is now going towards your principle payment and not interest ($950 to principle and only 50 to interest).

So they are basically saying that if you pay your mortgage off faster, you are not entitled to a refund of any of the interest you already paid.

Bryan Said:

15 year mortgage rates?

We Answered:

I purchased a house 2 years ago and got a 15 year mortgage. I have a rental property that has a 30 year mortgage. I can tell you that besides having the house paid off in 15 years, seeing the principle go down 7K every year is sweet! And we bought when the rates weren't as good as they are now. I think the real estate market has just about bottomed out. Along with property values going up (although way slower than in the past), you should be sittin' pretty after a few years with a 15 year mortgage. Good luck!!

Reginald Said:

local mortgage rates 15 year fixed?

We Answered:

Adding a question mark to the end of a string of words doesn't automatically make it a question. You are missing a pronoun and a verb.

With good credit, my local bank is offering 15 year fixed loans at 4.34%, if that's what you are attempting to ask. What your bank offers based on your employment history, down payment, and credit rating is not something I know.

Larry Said:

I have a 30 year mortgage on my house. If I pay the payment that was quoted on a 15 year,will pay off bein15?

We Answered:

Probably, but you will be paying more because I'm sure your paying a higher interest rate on a 30 year vs. a 15 year mortgage. The advantage of a 30 year is if you fall on hard times you can pay the lower 30 year rate.