Low Rates Make 'Dream' Cheaper Than Ever

Amid all the bad news about mortgage defaults and foreclosures, there's good news for qualified borrowers. Thanks to the Federal Reserve, you can lock in rates lower than 5% if you're buying a home or refinancing a loan.

The average interest rate on a 30-year, fixed-rate mortgage has fallen to 5%. You could pay as little as 4.75% on a 15-year loan.

By now, everyone knows the importance of due diligence before agreeing to a mortgage. This time around, lenders are scrutinizing applicants' incomes, credit scores and home values more closely. ...