Today’s mortgage, refinancing rate: December 12, 2021

0


Mortgage rates have gone up a bit in recent months, but they are still at their lowest level. Mortgage rates tend to be low when the economy is struggling and the coronavirus pandemic has taken a toll on the US economy.

the


Federal Reserve

aggressively bought assets, including mortgage-backed securities, to help the economy. But the Fed announced in November that it would start slowing down its buying, which could cause mortgage rates to rise in 2022.

Today’s Mortgage and Refinance Rates

Mortgage rates today

Today’s refinance rate

Mortgage calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:

Mortgage calculator

$1,161
Your estimated monthly payment

  • Pay a 25% higher down payment would save you money $ 8,916.08 on interest charges
  • Lower the interest rate by 1% would save you $ 51,562.03
  • Pay an extra fee $ 500 each month would reduce the loan term by 146 month

By clicking on “More Details” you will also see how much you will pay over the life of your mortgage, including the amount of principal versus interest.

How do mortgage rates work?

A mortgage interest rate is the commission a lender charges for borrowing money, expressed as a percentage. For example, you get a mortgage for $ 300,000 with an interest rate of 2.5%.

Mortgage rates can be fixed or adjustable. A fixed rate mortgage keeps your rate at the same level for the life of your loan. A variable rate mortgage locks in your rate for the first few years or so, then changes it periodically. With an ARM 7/1, your rate would stay stable for the first seven years, then change every year.

The longer the term of your mortgage, the higher your rate will be. For example, you will pay more with a 30-year mortgage than a 15-year mortgage. However, longer terms come with lower monthly payments as you spread out the repayment process.

How to get the best mortgage rate?

Here are some steps you can take to get the lowest possible mortgage rate:

  • Consider fixed rates versus adjustable rates. You may be able to get a lower introductory rate with an adjustable rate mortgage, which can be beneficial if you plan to move out before the introductory period ends. But a fixed rate might be better if you buy a home forever, because you won’t risk your rate going up later. Look at the rates offered by your lender and assess your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to increase your credit score or lower your debt-to-income ratio, if necessary. Saving for a larger down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the one that is right for your financial situation will help you get a good rate.

How to 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. You shouldn’t need a very high credit score or down payment to get a loan. You also want it to offer good rates and charge reasonable fees.

Once you’re ready to start shopping for homes, apply for pre-approval with your top three or four. A pre-approval letter indicates that the lender wants to lend you up to a certain amount, at a specific interest rate. When you are pre-approved, your mortgage rate is locked in for 60 to 90 days. 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 serious credit investigation. A bunch of serious questions on your report can hurt your credit score, unless it’s for the purpose of finding the best rate.

If you limit your rate purchases to about a month, the credit bureaus will understand that you are looking for a home and should not hold up every individual claim against you.


Share.

Comments are closed.