Today’s mortgage, refinancing rate: October 16, 2021

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Mortgage rates are generally low today and likely will stay that way for the remainder of 2021. Fixed mortgage rates edged up over the past month, but 30-year rates remained below 3.5%.

Mortgage rates tend to be low when the economy is struggling and the coronavirus pandemic continues to hurt the US economy.

There are signs that the economy is improving. Inflation rose 0.4% from August to September, which was more aggressive than many economists thought. However, the United States created almost 200,000 fewer jobs in September than expected.

The economy – especially the jobs numbers – needs to make greater headway for buyers to see significant long-term increases in mortgage rates.

Today’s Mortgage and Refinance Rates

Mortgage rates today

Money.com conventional rates; RedVentures government guaranteed rates.

Today’s refinance rate

Money.com conventional rates; RedVentures government guaranteed rates.

How do mortgage rates work?

A mortgage interest rate is the commission a lender charges for borrowing money, expressed as a percentage. For example, you get a mortgage loan of $ 300,000 with an interest rate of 2.5%.

Mortgage rates can be fixed or adjustable. A fixed rate mortgage keeps your rate at the same level for the life of your loan. A variable rate mortgage locks in your rate for the first few years or so, then changes it periodically. With an ARM 7/1, your rate would stay stable for the first seven years, then change every year.

The longer the term of your mortgage, the higher your rate will be. For example, you will pay more with a 30-year mortgage than a 15-year mortgage. However, longer terms come with lower monthly payments as you spread out the repayment process.

How to get the best mortgage rate?

Here are some steps you can take to get the lowest possible mortgage rate:

  • Consider fixed rates versus adjustable rates. You may be able to get a lower introductory rate with an adjustable rate mortgage, which can be beneficial if you plan to move before the introductory period ends. But a fixed rate might be better if you buy a home forever, because you won’t risk your rate going up later. Look at the rates offered by your lender and assess your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to improve your credit score or reduce your debt-to-income ratio, if necessary. Saving for a larger down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the one that is right for your financial situation will help you get a good rate.

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 back each individual claim against you.


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