Right now, a good mortgage rate for a 15-year fixed loan could be in the high -3% range or below -4%, while a good rate for a 30-year mortgage is generally in the range. With mortgage rates rising rapidly, homeowners are rushing to save money on refinancing. Currently, the average rate of a 30-year fixed mortgage is around 5.3%. This leaves less than a million homeowners able to refinance their mortgage, according to Black Knight, a data analysis firm.
A “good interest” is different for everyone. People with a lower credit rating may not be able to get the best interest rates. In addition, your location will affect the range of rates available to you. The central bank began raising the benchmark interest rate in March, and in July it raised rates 75 basis points for the second time this year.
Your mortgage is a loan, so, like any other loan, you'll need a very good credit score to qualify for the best rate. A rate lock freezes the interest rate on a mortgage, usually for a fee that is paid when you accept the terms of the loan. The current mortgage rates listed below assume a few basic things about you, including that you have very good credit (a FICO credit score of more than 740) and are buying a single-family home as your primary residence. Those discount points are an additional sum that you can choose to pay at closing to lower your mortgage rate a little.
That's why a mortgage APR is usually higher than the interest rate, and that's why it's such an important figure when comparing loan offers. It's only a fraction of a percentage point higher than the lowest mortgage rate recorded in the history of a 30-year fixed-rate loan. Your best mortgage rate will depend on your personal credit profile, down payment amount, income, and current debt burden. In times of rising rates, borrowers need to pay more attention to their rate quote and take advantage of the rate lock.
The mortgage lender guarantees (with some exceptions) that the rate offered to a borrower will remain available to that borrower for a set period of time. With Fiona, you compare and search mortgage rates from several lenders at once, so you can easily decide which offer is best for your needs. Mortgage lenders customize your interest rates based on your credit history and other details about your financial life. Generally, if interest rates are relatively low, it's best to secure an interest rate lock so that you can hold them when your new loan closes.
You'll still want to confirm with the lender that your rate is locked and for how long it will be valid. Credible is an online marketplace where you can get competitive mortgage rates from several vetted lenders in real time. Your mortgage interest rate tells you how much you pay your lender each year just to have the loan.
