Table of Contents: Masthead Sticky

Mortgage rates have been inching upward for the past two months, but they’re still at historic lows overall. The 30-year fixed rates are under 3%, and 15-year rates are well under 2.5%.

Even as mortgage rates inch upward, Freddie Mac data shows that rates are still significantly lower than they have been the past five years:

Mortgage rates will probably stay low for the rest of 2021, but we may see them rise in 2022.

Mortgage rates today
Daily Mortgage Rates – newMortgage refinance rates today
Daily Mortgage Rates – refinanceMortgage calculator

You can use our free mortgage calculator to see how today’s rates would affect your monthly mortgage payments and your finances in general.

mortgage calculator
What is a mortgage rate?

A mortgage rate is the interest you pay on the money you borrow from a lender to buy or refinance your home. It’s basically the fee you pay for borrowing, expressed as a percentage. For example, you may take out a $200,000 mortgage, plus a 2.75% interest rate.

There are two types of mortgage rates: fixed and adjustable.

A fixed-rate mortgage locks in your rate for the entire length of your mortgage. Even if rates in the US market increase or decrease, your rate will stay the same. This is an especially great deal right now, as rates are at historic lows overall.

An adjustable-rate mortgage keeps your rate the same for a predetermined amount of time, then changes it periodically. A 5/1 ARM locks in your rate for the first five years, then the rate fluctuates once per year. This is a riskier approach these days, because you risk your rate going up later since rates are low right now.

  14 can't-miss beauty deals from Ulta's major Black Friday sale

How are mortgage rates determined?

Mortgage rates are determined by a combination of factors — some you can control, and some you can’t.

The main external factor is the economy. Interest rates tend to be higher when the US economy is thriving and lower when it’s struggling. The two main economic factors that impact mortgage rates are employment and inflation. When employment numbers and inflation go up, mortgage rates tend to increase.

You can control your finances, though. The better your credit score, debt-to-income ratio, and down payment, the lower your rate should be.

Finally, your mortgage rate relies on what type of mortgage you get. Government-backed mortgages (like FHA, VA, and USDA loans) charge the lowest rates, while jumbo mortgages charge the highest rates. You’ll also get a lower rate with a shorter mortgage term.

How do I choose a mortgage lender?

First, think about what type of mortgage you want. The best mortgage lender will be different for an FHA mortgage than for a VA mortgage.

A lender should be relatively affordable. …read more

Source:: Business Insider

      

(Visited 1 times, 1 visits today)
News

Leave a Reply

Your email address will not be published. Required fields are marked *