The following information is from bankrate.com (https://www.bankrate.com/mortgages/mortgage-rates/)
With rates on the rise, it’s important to shop around for mortgage offers before committing to a loan.
On Monday, August 29, 2022, the current average 30-year fixed-mortgage rate is 5.89%, increasing 11 basis points since the same time last week.
If you're planning to refinance, today's national average 30-year refinance rate is 5.85%, rising 9 basis points from a week ago.
Meanwhile, today's national average 15-year refinance rate is 5.11%, rising 16 basis points over the last seven days.
The swift uptrend in mortgage rates has been weighing on home sales during what would historically be an active spring and summer homebuying season.
Because a home is usually the biggest purchase a person makes, a mortgage is usually a household’s largest chunk of debt. Getting the best possible terms on your loan can mean a difference of hundreds of extra dollars in or out of your budget each month, and tens of thousands of dollars in or out of your pocket over the life of the loan.
It's important to prepare for the mortgage application process to ensure you get the best rate and monthly payments within your budget.
Lenders consider these factors when pricing your interest rate:
• Credit score
• Down payment
• Property location
• Loan amount/closing costs
• Loan type
• Loan term
• Interest rate type
Your credit score is the most important driver of your mortgage rate. Lenders have settled on this three-digit score as the most reliable predictor of whether you’ll make prompt payments. The higher your score, the less risk you pose in the lender’s view — and the lower rate you’ll pay.
Here are quick steps to prepare for a mortgage:
Again, whatever type of mortgage you’re looking for, in this environment, it’s more important than ever to compare rates before selecting a lender.
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