Today’s Mortgage, Refinance Rates: May 13, 2022

The average 30-year fixed mortgage rate rose again this week, hitting 5.3%, according to Freddie Mac. Although rates are expected to continue rising, there are signs they may not rise as fast as they have in months. previous. In April, mortgage rates increased at a slower pace than in March.

If you’re planning to buy a home, it’s more important than ever to shop around with multiple lenders and consider all the different mortgage options available to you. Once you have a good idea of ​​what lenders offer and what you qualify for, you can more easily compare your options and choose the one that’s most affordable for you.

mortgage rates today

Mortgage Refinance Rates Today

mortgage calculator

Use our free mortgage calculator to see how current mortgage rates would affect your monthly payments. By entering different rates and terms, you’ll also understand how much you’ll pay over the entire life of your mortgage.

mortgage calculator

$1,161
Your estimated monthly payment

  • paying a 25% a higher down payment would save you $8,916.08 on interest charges
  • Reduce the interest rate on one% I would save you $51,562.03
  • Paying an additional $500 each month would reduce the length of the loan by 146 months

Click “More Details” for tips on how to save money on your mortgage over the long term.

What is a fixed rate mortgage?

When you get a mortgage, you’ll need to decide what type of rate you want: fixed or adjustable.

AN fixed rate mortgage locks in your rate for the life of your mortgage. This means that even if market rates go up or down, your rates will stay the same. Fixed rate mortgages can be beneficial for borrowers looking for stability; Although you may lose out if rates tend to go down, you don’t have to worry about your monthly payment going up if rates go up.

An adjustable rate mortgage it keeps your rate the same for a predetermined period of time and then changes it periodically. A 5/1 ARM locks in your rate for the first five years, then the rate fluctuates once a year. This is a riskier approach, because you risk your rate going up later.

Adjustable rates can be attractive because they are often lower than 30-year fixed rates. If you plan to sell your home or refinance your mortgage before the ARM’s introductory fixed period ends, an ARM might be a good option for you. Just make sure you understand how much your rate and payment could increase when the introductory period ends.

If you plan to stay in your home for a long time or simply prefer the stability of a fixed monthly payment, a fixed-rate mortgage may be more suitable for you.

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 booming and lower when it’s struggling. The two main economic factors that affect mortgage rates are employment and inflation. When employment numbers and inflation rise, mortgage rates tend to rise.

You may control your finance, until a certain point. The better your credit score, debt-to-income ratio, and down payment, the lower your rate should be.

Ultimately, your mortgage rate depends on what type of mortgage you get. Government-backed mortgages (such as FHA, VA, and USDA mortgages) 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 it is for a VA mortgage.

A lender must be relatively affordable. You shouldn’t need a super high


credit score

either


Deposit

to get a loan. You also want it to offer good rates and charge reasonable rates.

Once you’re ready to start buying homes, apply for pre-approval with your top three or four options. A preapproval letter indicates that the lender would like to lend you up to a certain amount, at a specific interest rate. With a few pre-approval letters in hand, you can compare each lender’s offer.

When you apply for pre-approval, a lender does a thorough credit check. A lot of difficult inquiries on your report can hurt your credit score, unless it’s to shop around for the best rate.

If you limit your rate search to a month or so, the credit reporting agencies will understand that you’re looking for a home and shouldn’t hold each individual inquiry against you.

Add Comment