Are you thinking about buying a new home or refinancing your current one? Finding the right mortgage deal can be a bit tricky nowadays, especially with high rates and limited housing options. But don't worry, there are still smart choices available, especially if you have a solid credit history.
To help you navigate the current market, here's a breakdown of today's average mortgage and refinance rates:
Average Mortgage Rates (as of February 16, 2024) (please update the rates & APR when posting)
15-year mortgage: 6.59%
30-year mortgage: 7.24%
Average Refinance Rates (as of February 16, 2024)
15-year refinance: 6.65%
30-year refinance: 7.28%
It's worth noting that these rates are national averages and the rates you can qualify for might differ based on various factors like your location, credit score, and the type of loan you're seeking.
-> Learn more: How Refinancing Might Affect Your Home Equity
How to Secure a Great Mortgage or Refinance Rate Today
Although interest rates are higher compared to a few years ago, there are still opportunities to lock in favorable rates.
To improve your chances of securing a good rate, focus on strengthening your credit score. Lenders typically offer the best rates to borrowers with credit scores in the mid-to-high700s or above. Paying bills on time, checking your credit report for errors, and avoiding new credit applications close to your mortgage process can all help.
Additionally, shopping around and comparing offers from different lenders is crucial. Don't limit yourself to your current mortgage provider, especially if you're refinancing. You might find better rates and terms elsewhere, potentially saving you money over the life of the loan.
What to Consider in a Mortgage or Refinance Loan
When choosing a mortgage or refinancing, consider factors like the loan term and associated fees. Shorter terms often come with better interest rates, but it's essential to calculate the overall cost to ensure affordability.
If you're refinancing, compare all aspects of the new loan against your existing mortgage, including closing costs. Even if you're offered a lower rate, other fees could impact your savings in the long run.
Lastly, once you've made your decision, be sure to lock in your mortgage rate to avoid any potential increases before closing on your home.
-> Learn more: What is a First Mortgage?
In Conclusion
Interest rates may fluctuate over time, but there are always viable options available for both new homebuyers and existing homeowners looking to refinance. Take the time to compare rates and terms from different lenders by using the Loan Factory website to find the most suitable deal for your situation. And remember to factor in all costs and payments before committing to a new loan.
