Still time to save: Today’s mortgage rates remain stable | August 31, 2022
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Based on data compiled by Credible, Mortgage Refinance Rates remained unchanged across all maturities since yesterday.
Prices were last updated on August 31, 2022. These prices are based on the assumptions shown here. Actual prices may vary. With 5,000 reviews, Credible gets an “excellent” Trustpilot rating.
What that means: Mortgage refinancing rates were dormant across all maturities today. With longer payback rates approaching 6%, homeowners looking to refinance should consider 15-year terms, which are the lowest available at 5%.
Today’s mortgage rates for home purchases
Based on data compiled by Credible, home purchase mortgage rates have remained flat across all maturities since yesterday.
Prices were last updated on August 31, 2022. These prices are based on the assumptions shown here. Actual prices may vary. Credible, a personal finance marketplace, has over 5,000 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).
What that means: Although mortgage rates were on hold today, 30- and 20-year rates have risen closer to 6% since early August. Borrowers who can handle higher monthly payments will see greater interest savings on 15- and 10-year mortgages. Buyers should take advantage of this pause and secure a rate ahead of future hikes.
To find great mortgage rates, start by using Credible’s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use credibles mortgage calculator to estimate your monthly mortgage payments.
How mortgage rates have changed over time
Mortgage rates today are well below the highest annual average rate recorded by Freddie Mac of 16.63% in 1981, down from 3.94% in 2019. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.
The historic drop in interest rates means homeowners with mortgages dating back to 2019 and older could potentially make significant interest savings by refinancing at one of today’s lower interest rates. When considering a mortgage refinance or purchase, it’s important to consider closing costs such as appraisal, application, origination, and attorney fees. These factors, along with the interest rate and loan amount, contribute to the cost of a mortgage.
Do you want to buy a house? Credible can help you Compare current interest rates from multiple mortgage lenders instantly in just a few minutes. Use Credible’s online tools to compare rates and pre-qualify today.
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How credible mortgage rates are calculated
Changing economic conditions, central bank policy decisions, investor sentiment and other factors affect the movement of mortgage rates. Credible Average Mortgage Rates and Mortgage Refinance Rates presented in this article are calculated based on information provided by partner lenders who pay compensation to Credible.
The interest rates assume a borrower has a credit score of 740 and borrows a conventional loan on a single-family home that will be their primary residence. The rates also require no (or very little) discount points and a 20% deposit.
The credible mortgage rates reported here only give you an idea of the current average rates. The actual rate received may vary based on various factors.
Factors Affecting Mortgage Rates (Under Your Control)
Many factors affect what mortgage rate you may qualify for, and some of them are within your control. Improving these factors could help you qualify for a lower interest rate.
- Credit Score — Generally, the lowest interest rates go to borrowers with the best credit ratings.
- Debt to Income Ratio — DTI is a percentage that compares your total debt to your income. To calculate DTI, divide your gross monthly income by the sum of all your minimum monthly debt payments. In general, lenders prefer a DTI of 35% or less.
- Deposit Amount — In general, lenders (and many sellers) are sympathetic to a higher down payment. If you’re paying less than 20% of the home purchase price, many lenders require personal mortgage insurance, which protects the lender (not you) if you default on the mortgage.
- Location/Price — Interest rates can vary depending on which state you live in and where in the state you buy. If you have to borrow a lot more than average (a jumbo loan) or very little, you may get a higher interest rate.
- Repayment Period — The lowest interest rates are usually available for 10 or 15 year terms, while 30 year terms usually have the highest interest rates.
When trying to find the right mortgage rate, consider using Credible. You can Use Credible’s free online tool Easily compare multiple lenders and view pre-qualified rates in just minutes.
Do you have a financial question but don’t know who to contact? Email The Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert section.
As a credible authority on mortgages and personal finance, Chris Jennings has covered topics such as mortgage lending, mortgage refinancing, and more. He has been an editor and editorial assistant in the online personal finance space for the past four years. His work has been featured by MSN, AOL, Yahoo Finance and others.
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