Mortgage rates dropped again this week as investors remained worried about the European debt crisis.
The 30-year fixed-rate mortgage fell 10 basis points to 4.23 percent. The 15-year fixed-rate mortgage fell 9 basis points to 3.48 percent. The average rate for 30-year jumbo mortgages fell 8 basis points to 4.81 percent.
Falling mortgage rates is music to the ears of millions of underwater homeowners who are looking for a little relief.
Borrowers will be able to refinance their mortgages owned by Fannie Mae and Freddie Mac under the Home Affordable Refinance Program, or HARP, even if they owe more than what their house is worth. The previous version of HARP allowed borrowers to refinance up to 125 percent of the home's appraised value.
To be eligible for the program, borrowers must be current on the mortgage at the time of the refinance, with no late payments in the past six months and no more than one late payment in the past 12 months. Some lenders will start offering refinances under the improved plan, starting December 1st.
To find the best mortgage rates, simply log on to Bankrate.com. I'm Kristin Arnold.