Have you heard, conventional mortgage rates are pretty low. In the low to mid 5% range is feasible, with some people paying a little more to get close to 5.0% or even the upper 4s. Those a crazy low interest rates for 30-year money.

Why are these low rates available? Mortgage companies and lenders, spurred on by the financial bailouts of the last quarter need to generate some revenue and get credit flowing. Thanks to a combination of incentives, and up until recently, weak demand, mortgage rates have dropped back down to near historic levels. These low rates are causing increased refinance and purchase application demand... hopefully leading to a leveling off of home prices and movement in the purchase market.

These rates aren't available for everyone though. The days of easy 100% loans and no documentation are long gone. If you want to take part in these great low rates, expect to have substantial equity (10-20%), and verify everything. You need to have stable employment history and verifiable income, perfect mortgage payment history and impeccable credit (at least for the past few years). You also need to have a low debt ratio to quality (around 25-28% for other debts and 36-38% for your debt ratio including your housing expenses).

If you can verify your income, have a great track record with your debts, and have a 700+ credit score... now may be the best time in recent history to buy or refinance a home. If you are in the market, consider applying now before rates like these are gone for good.