The Mortgage Rates Trends And Refinance Tips you need…rates are on the rise, just in case you have not noticed… Post updated 05-02-23
As of yesterday (5-01-23) mortgage rate trends re: Mortgage News Daily- 30-year fixed rate is down to 6.730%, 15 yr. 6.120%
Mortgage News Daily also states the shift upward of the rates was due to the failure/sell-off/bell-out, etc. of the First Republic Bank by JP Morgan Chase.
Bankrate Weekly National Mortgage Refinance Trends: 30 yr. refi = 7.000%, 15 yr. 6.230%, etc. **see all of them here
What Are Mortgage Interest Rate Trends-
These are the average rates across the board at different lenders usually and are not specific for each lender. Meaning lenders often have slightly different interest rates, based on the provisions within a mortgage loan application file.
*This is not ironclad for all lenders but their rates can vary as a normal process. It may only be .125%, or .250% or .750%.
Why and what makes a difference in the rates of a mortgage loan?
- A cashout refinance will normally have a higher interest rate
- Fixed-rate mortgage interest rate is higher than an adjustable-rate loan (ARM)
- The Term of your loan will have an effect on the interest rate (15 yr-vs-30 yr)
- If the loan to value for a purchase or refinance is low it can affect the interest rate
- The mortgage product
- Credit scores
Refinance Tips
When is the best time to refinance, this may be a question for many. If this is you, it really depends upon your circumstance, and what your long-term goals are for paying off your current mortgage loan. What is your current interest rate, what is your product type, and how will this affect your payment in the long run?
If you are interested still in refinancing, you need to be watching the mortgage interest rate news, especially at this time in our economy. I am sure you may be questioning if the time is right before the rates rise higher%.
What The Rate Trends Are Telling Us – Re: Mortgage Rate Trends and Refinance Tips
At the moment this is where we are re: Mortgage News Daily.
This is how Mortgage Interest Rates Are Determined -read this.
What Is Your Goal For The Present in The Refinance Cycle
As interest rates are now lower, some homeowners are looking at refinancing options. Here are some mortgage refinancing tips. However, refinance transactions have declined most recently.
Rates were increasing steadily for the past few months. Hopefully but certainly not a guarantee rates will as they are or become lower. The higher rates previously may be putting pressure on homeowners who took out adjustable-rate mortgages or have been borrowing money against a home equity line of credit.
For people in that position, refinancing into a fixed-rate mortgage is starting to look very attractive if for no other reason than to avoid future bumps in the rates.
If you are considering refinancing your mortgage, there are a couple of things to keep in mind. Unlike the rushed process of trying to get funding for a purchase, you have more time to evaluate and compare mortgage options. Shop around and find out what different lenders are offering that fits your potential needs.
Refinance Tips To Help You Decide Your Goal
1. What is your goal? – Is your goal to lower the monthly payment or to simply try to pay less interest or are you trying to get a lock-in before the rates go overboard? While these questions may seem like the same thing, they really aren’t.
Getting an interest rate while the rates are some lower, can be helpful if you are lowering your monthly payment. However, it is still important to note that when you can afford to pay an additional $$$ to the principal of the loan, this, of course, helps you pay off the mortgage faster. You can apply $100 or less, any amount will lower the principal balance and save interest on your loan. The larger point is to simply figure out your goal and find a loan that meets it.
2. Shop Lenders to find the best interest rate – One of the best ways to do this is to seek knowledge from a variety of lenders. In the market today, it is easy to go online to get the information you need about different lenders.
3. Once you choose a lender – It is best not to seek preliminary approval until you have investigated what lender you will use. If your credit only is pulled you will not obtain a full pre-approval. The lender will give you a pre-qualification or preliminary approval based on the credit report information and your voiced income, etc. To get that full pre-approval you will have your credit report pulled, income verified, assets, and of course the appraisal of the property.
4. Also ask yourself if you are willing to pay the closing cost associated with the refinancing out of pocket, or if you add it to the loan amount. Remember if you are adding the closing cost into the loan amount, you want to make sure it will not increase your mortgage payment significantly.
Points and Interest Rates
If you want a lower interest rate, question the lender about paying mortgage points to get the rate lower. Of course, this means more closing added to the mortgage loan unless you are paying all costs out of pocket.
Two critical components of a home loan are the interest rate and points charged at the outset. The interest rate is simply the cost of borrowing the money and applies to the total amount borrowed, to wit, six percent for example. The points on a home loan are an up-front fee that equates to a percentage of the loan. For instance, one point equates to an up-front fee equal to one percent of the total loan value. Paying one point on a $300,000 loan would equate to a fee of $3,000. *example only
EndNote:
Refinancing a mortgage is a less stressful process when compared to getting a purchase loan. You are working to get the most out of your money and get your mortgage loan paid off quicker.
Be knowledgeable and stand your ground for the interest rate you desire based on your credit and good mortgage standing.
If you have any questions or concerns about Mortgage Interest Rates Trends and Refinance Tips, you are welcome to let us know.
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