There is one positive about the ailing economy here in the United States, and that’s the fact that both mortgage rates as well as home equity loans continue to drop. To understand how extremely low interest rates are for both 30 year and 15 year mortgages, as well as home equity lines of credit, all you need to do is look back just a few years ago at what certificate of deposits and money market funds were paying.

Currently a borrower with a good credit score can obtain a 30 year fixed mortgage at a rate of about 4.52%. A 15 year fixed rate mortgage can be had at just 3.95%. A 10 year Home equity loan rate is currently sitting at 7.11%, while a home equity line of credit, ofter referred to as a HELOC, can be had for just 4.76%. Now consider the fact that only 3 and a half years ago almost any American with over $1,000 in cash could purchase a 1 year certificate of deposit and earn approximately 5.05 % interest. This shows just how much rates have gone down in the past few years.

If there was ever a time to refinance your home, or purchase a home on credit, even if you have the cash to do so, now is it. Rates are sure to rise in the long run, and being able to lock a rate this low is a once in a lifetime opportunity. Most financial experts see rates slowly rising by the middle of 2011, and see a risk of inflation later in 2012, which could force rates to rise even higher.