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Mortgage Rates Fluctuate: 15-Year Terms Remain the Lowest

Find Out How to Secure the Best Mortgage Rates and Refinance Deals

In the ever-changing landscape of the housing market, mortgage rates have experienced some noteworthy shifts. According to data compiled by Credible’s website, rates for various mortgage terms have both risen and fallen since yesterday. These fluctuations provide homebuyers and refinancers with new opportunities to assess their options and make informed decisions. By staying up to date with the latest trends, borrowers can potentially secure more favorable rates and save significant amounts of money over the course of their loans.

Let’s take a closer look at the current mortgage rates for different terms:

  • 30-year fixed mortgage rates: 6.990%, up from 6.875% (+0.115)
  • 20-year fixed mortgage rates: 6.250%, down from 6.625% (-0.375)
  • 15-year fixed mortgage rates: 6.125%, up from 5.990% (+0.135)
  • 10-year fixed mortgage rates: 6.375%, up from 6.125% (+0.250)

Based on the latest updates as of May 25, 2023, it’s important to note that these rates are subject to change and may vary depending on individual circumstances. Credible, a trusted personal finance marketplace, has garnered an impressive reputation with over 5,000 Trustpilot reviews and an average star rating of 4.7 out of 5.0.

Analyzing the current mortgage rates, it is evident that 15-year terms at 6.125% remain the lowest available rate. Homebuyers seeking to minimize interest payments should strongly consider this option. Additionally, those who prioritize lower monthly payments over the long term may find 20-year terms more appealing, as they come with rates nearly three-quarters of a percentage point lower than their 30-year counterparts.

To find the most competitive mortgage rates, interested individuals can utilize Credible’s secure website. This platform allows borrowers to compare rates from multiple lenders without negatively impacting their credit scores. Furthermore, a mortgage calculator can assist in estimating monthly mortgage payments, enabling borrowers to make more informed financial choices.

For homeowners contemplating refinancing their mortgages, it is worth noting that mortgage refinance rates have risen across all terms since yesterday. Here are the updated rates for various mortgage refinance terms:

  • 30-year fixed-rate refinance: 6.990%, up from 6.490% (+0.500)
  • 20-year fixed-rate refinance: 6.990%, up from 6.250% (+0.740)
  • 15-year fixed-rate refinance: 5.875%, up from 5.750% (+0.125)
  • 10-year fixed-rate refinance: 6.375%, up from 6.000% (+0.375)

Similar to mortgage rates for home purchases, these refinance rates are subject to change and may vary depending on individual circumstances. By understanding the current trends, borrowers can make well-informed decisions regarding their refinancing options.

Among the refinancing terms, 20-year rates have seen the most significant increase today, rising by nearly three-quarters of a percentage point to 6.99%. The 30-year terms have also reached the same rate, rising by half a percentage point. Meanwhile, 15-year terms experienced the smallest increase, reaching 5.875%. Homeowners who aim to refinance for smaller monthly payments should consider 20- or 30-year terms, while those prioritizing interest savings should explore 15-year terms at 5.875%.

Securing the lowest possible mortgage rates requires strategic steps and careful consideration. Here are a few recommendations to help borrowers achieve this goal:

  1. Improve your credit score: Aim for a score in the 700s or higher, as a higher credit score increases your chances of receiving a low mortgage rate and loan approval.
  2. Eliminate your debt: Focus on reducing your debt to lower your debt-to-income (DTI) ratio. A lower DTI ratio enhances your chances of securing a favorable mortgage rate and loan approval.
  3. Make a larger down payment: Increasing your down payment amount reduces the lender’s risk, potentially resulting in a more favorable interest rate.

Additionally, it is crucial to compare rates from different lenders before finalizing a mortgage or refinance loan. Credible’s marketplace provides a convenient platform for easily comparing mortgage and refinancing lenders.

Choosing the right mortgage lender is a critical decision, as it involves a significant long-term commitment. Here are some tips to assist borrowers in selecting the most suitable lender:

  1. Comparison shop: Take the time to compare rates and terms from multiple lenders. Credible’s website simplifies this process by allowing borrowers to compare pre-qualified rates from various lenders.
  2. Consider a mortgage broker: Mortgage brokers can help you find the most favorable loan deals, but be aware that they typically charge a small percentage of the loan for their services.
  3. Leverage existing relationships: Explore mortgage offerings from banks and financial institutions you already have a relationship with. Loyalty and familiarity may work to your advantage when negotiating a favorable mortgage deal.
  4. Seek referrals: Reach out to friends, family, coworkers, and neighbors for referrals and insights based on their experiences with different lenders.

It is essential to understand how Credible calculates its mortgage rates. The rates reported by Credible are based on information provided by partner lenders, who compensate Credible for their services. These rates assume a borrower with a credit score of 740, seeking a conventional loan for a single-family primary residence with a 20% down payment. While Credible’s reported rates offer a valuable benchmark, individual rates may vary based on several factors.

In conclusion, staying informed about current mortgage rates and trends is crucial for anyone considering home purchases or refinancing. By utilizing platforms like Credible and following the steps outlined above, borrowers can increase their chances of securing the most favorable rates available. Remember, taking the time to compare rates and lenders can potentially lead to substantial savings over the life of a mortgage.

Sources:

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Individual rates and terms may vary.

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