Today’s Mortgage and Refinance Rate: November 4, 2021

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For about a month and a half, fixed mortgage rates have been rising slowly but steadily, but they remain relatively low. For example, 30-year rates hold around 3.5% and 15-year rates hold around 2.5%.

Even though fixed rates are on the rise, Freddie Mac data shows that the rates are still significantly lower than those of the last five years:

You can probably expect mortgage rates to stay low for the remainder of 2021, but we could see them rise in 2022 if the U.S. economy improves.

Mortgage rates today

Money.com conventional rates; RedVentures government guaranteed rates.

Mortgage Refinance Rate Today

Money.com conventional rates; RedVentures government guaranteed rates.

What is a mortgage rate?

A mortgage rate is the interest you pay on the money you borrow from a lender to buy or refinance your home. These are basically the fees you pay to borrow, expressed as a percentage. For example, you can take out a mortgage for $ 200,000 plus an interest rate of 2.75%.

There are two types of mortgage rates: fixed rates and adjustable rates.

A fixed rate mortgage lock in your rate for the duration of your mortgage. Even if the rates in the US market go up or down, your rate will stay the same. It’s a good deal right now, as rates are at historically low levels.

a adjustable rate mortgage keeps your rate the same for a predetermined amount of time, then changes it periodically. An ARM 5/1 locks in your rate for the first five years, then the rate fluctuates once a year. It’s a riskier approach these days because ARM rates start higher than fixed rates, and you risk your rate going up later.

How are mortgage rates determined?

Mortgage rates are determined by a combination of factors – some you can control and some you cannot.

The main external factor is economy. Interest rates tend to be higher when the US economy is booming and lower when it is struggling. The two main economic factors that affect mortgage rates are employment and inflation. When the number of jobs and inflation increase, mortgage rates tend to rise.

You can control your finances, although. The better your credit score, debt-to-income ratio, and down payment, the lower your rate should be.

Finally, your mortgage rate depends on what type of mortgage you obtain. Government guaranteed mortgages (like FHA, VA, and USDA loans) charge the lowest rates, while jumbo mortgages charge the highest rates. You will also get a lower rate with a shorter mortgage term.

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 choices. 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 check. A bunch of serious inquiries on your report can hurt your credit score, unless it’s to buy 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 each individual claim against you.


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