Mortgage rates rose to 3% for the first time in weeks. Here’s why that’s still great news

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Mortgage rates rose 3% for the first time in a month.

Freddie Mac said the 30-year average fixed mortgage rate rose 0.06% over the past week.

Mortgage rates have moved slightly this month and are between 2.94% and 3%. So overall, today’s mortgage and refinancing rates are quite low. Given competing factors pushing and pulling rates, some experts don’t expect large swings in the near future.

Mortgage rates are higher than they were at the beginning of 2021, but still cheap for borrowers. “These are phenomenal rates. Don’t let yourself be made an enemy of the great, ”says Dr. Elliot Eisenberg, President and Chief Economist, Business Consulting firm GraphsandLaughs, LLC. Even if the interest rates are not in the lower range that we had in January 2021, you can still use the current mortgage rates to your advantage.

Currently, a $ 300,000 30 year loan would cost $ 168 less per month, and you would save $ 60,000 in interest, compared to getting the same loan two years ago when interest rates were about 1% higher.

Before going for a low interest rate with the first lender you come across, however, you need to consider factors beyond your mortgage rate when buying a home or refinancing.

What You Need To Know To Get The Best Mortgage For You

Choosing the best home loan is about getting the lowest interest rate while paying the lowest fees.

“I think there are so many ads that consumers are misled … a lot of the time they don’t read the fine print,” said Jennifer Kouchis, senior vice president of real estate loans at VyStar Credit Union. “You have to look at everything and what’s on offer overall.” Two home loans could have the exact same interest rate, but one offer could contain thousands of dollars in additional fees, such as: B. Discount points.

So if you want to take advantage of low interest rates, you should look for the best mortgage lender. To be able to accurately compare quotes, you need to submit a full application rather than just getting mortgage approval for every lender you are considering. Within three business days of receiving your application, lenders must provide you with a standardized form called a credit estimate.

Your loan estimates list the interest rates, fees, and terms for each loan so it is easier to compare quotes. When looking at fees, pay particular attention to origination or lender fees, interest rate, and annual percentage (APR), which take certain fees into account along with the interest rate.

Remember, you have to compare apples to apples. Therefore, the loans should have the same repayment period (15 year mortgage, 30 year mortgage, etc.) and be the same type of mortgage (FHA loan, VA loan, conventional loan, etc.).



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