Fueled by declining stock markets, and universal fear regarding global debt, bond yields are decreasing which is providing downward pressure on fixed interest rates. The best 5 year fixed rate today August, 5th, 2011 is currently 3.49% for purchases that are closing within 45 days of application. The lender that provides this rate offers 20% prepayment privileges each year and does not limit the prepayment to just once per calendar year. You are allowed up to 20% of the original amount borrowed in increments throughout the year.

The lowest 5 year fixed rate in recent history occurred in December 2010 at 3.45%, so we are not far from the absolute lowest historical bottom.

Based on a mortgage of $300,000, at 3.49%, 30 year amortization, the monthly payment = $1,341.26.

Please do not hesitate to contact one of our brokers for more information: http://www.garibaldimortgage.com/contact.

Comment (84)