Today’s best mortgage deal? Opt for shorter terms for greater interest savings

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View mortgage rates for June 2, 2022, up from yesterday. (Credible)

Based on data compiled by Credible, mortgage refinance rate increased for two key mandates and remained unchanged for two other mandates since yesterday.

Rates last updated on June 2, 2022. These rates are based on the assumptions presented here. Actual rates may vary. Credible, a personal finance marketplace, has over 5,000 Trustpilot reviews with an average rating of 4.7 stars (out of a possible 5.0).

What does that mean: Rates on a 20-year mortgage refinance rose more than half a percentage point today, bringing that longer-term rate to 5.5%. With today’s increases, short-term rates offer homeowners the best opportunity to save on interest. Homeowners may find the 15-year rates particularly attractive, as they haven’t moved for three straight days.

Today’s Mortgage Rates for Buying a Home

Based on data compiled by Credible, mortgage rates for home purchases have increased on all repayment terms since yesterday.

Rates last updated on June 2, 2022. These rates are based on the assumptions presented here. Actual rates may vary. Credible, a personal finance marketplace, has over 5,000 Trustpilot reviews with an average rating of 4.7 stars (out of a possible 5.0).

What does that mean: Rates for 30-year terms, which are the most popular, soared today, meaning buyers may want to look to shorter terms to take advantage of the interest savings. With rates for 10- and 15-year loans nearly a full percentage point lower than 30-year loans, borrowers who can afford higher monthly mortgage payments should shop around and consider shorter repayment terms for find their best possible rate.

To find great mortgage rates, start by using Credible’s secure website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible’s mortgage calculator to estimate your monthly mortgage payments.

To find great mortgage rates, start by using Credible’s secure website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible’s mortgage calculator to estimate your monthly mortgage payments.

How mortgage rates have changed over time

Current mortgage interest rates are well below the highest average annual rate recorded by Freddie Mac – 16.63% in 1981. A year before the COVID-19 pandemic upended economies around the world, the mortgage rate he average interest on a 30-year fixed rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average for 30 years.

The historic decline in interest rates means that homeowners with mortgages from 2019 could potentially realize significant interest savings by refinancing with one of today’s lowest interest rates. When considering a mortgage or purchase, it’s important to consider closing costs such as appraisal, application, origination, and attorney’s fees. These factors, in addition to the interest rate and loan amount, all contribute to the cost of a mortgage.

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Are you looking to buy a house? Credible can help you compare current rates from multiple mortgage lenders both in minutes. Use Credible’s online tools to compare rates and get prequalified today.

Thousands of Trustpilot reviewers rate Credible as “excellent”.

How Credible Mortgage Rates Are Calculated

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage rates. Credible’s average mortgage rates and mortgage refinance rates shown in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a credit score of 740 and is borrowing a conventional loan for a single-family home that will be their primary residence. Rates also assume no (or very low) discount points and a 20% deposit.

The credible mortgage rates listed here will only give you an idea of ​​today’s average rates. The rate you actually receive may vary depending on a number of factors.

How Your Credit Score Affects Your Rate

Many factors can affect the interest rate you receive on a mortgage. Your credit score is important.

A higher credit score tells lenders that you know how to use credit responsibly. This can build their confidence that you’ll make your mortgage payments on time and won’t default. Applying for a mortgage with a high credit rating could help you qualify for lower interest rates and give you a wider range of loan types to choose from.

Conversely, a low credit score can lead lenders to believe that you will have difficulty managing your mortgage and could miss payments or even be subject to foreclosure. A low credit score likely means you’ll qualify for higher interest rates and your loan choices will be more limited.

If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see pre-qualified rates in just minutes.

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics like mortgages, mortgage refinance, and more. He was a publisher and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, etc.

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