As of right now, if you have suitable credit, employment history, and money down, 5.5% for a 30 year fixed is a reality.  Only a few weeks ago the rate was at 6.5%.  As an example, for a $300,000 loan, you would save $2316 a year with a 5.5% fixed rate vs. the previous 6.5%.  Think about what you could do with an extra $2316/year.  Save for colleges or retirement or a vacation?