Today’s Mortgage, Refinance Rates: March 26, 2022

Mortgage rates are rising again as markets react to Chairman Jerome Powell’s comments that the

Federal Reserve

it can respond to inflation with more aggressive rate hikes than initially planned.

The average 30-year fixed rate rose to 4.42% this week, according to Freddie Mac Factsits highest point in almost three years.

Even though rates are up, so are home values. From the start of the pandemic to the end of 2021, the median home price increased by more than 26%, according to data from the Census Bureau and the Department of Housing and Urban Developmentmeaning that many homeowners earned tens of thousands of dollars in equity in a relatively short period of time.

With rates expected to continue rising through 2022, now might be a good time to take advantage of a cash-out refinance to put that capital to work (like using it to finance a home improvement project, for example). ).

mortgage rates today

Mortgage Refinance Rates Today

mortgage calculator

use our free mortgage calculator to see how current mortgage rates would affect your monthly payments. By entering different rates and terms, you’ll also understand how much you’ll pay over the entire life of your mortgage.

mortgage calculator

Your estimated monthly payment

  • paying a 25% a higher down payment would save you $8,916.08 on interest charges
  • Reduce the interest rate on 1% I would save you $51,562.03
  • Paying an additional $500 each month would reduce the length of the loan by 146 months

Click “More Details” for tips on how to save money on your mortgage over the long term.

What is a fixed rate mortgage?

When you get a mortgage, you’ll need to decide what type of rate you want: fixed or adjustable.

TO fixed rate mortgage locks in your rate for the life of your mortgage. This means that even if market rates go up or down, your rates will stay the same. Fixed rate mortgages can be beneficial for borrowers looking for stability; Although you may lose out if rates tend to go down, you don’t have to worry about your monthly payment going up if rates go up.

A adjustable rate mortgage it keeps your rate the same for a predetermined period of time and then changes it periodically. TO 5/1 ARM locks in your rate for the first five years, then the rate fluctuates once a year. This is a riskier approach, because you risk your rate going up later.

Adjustable rates can be attractive because they are often lower than 30-year fixed rates. If you plan to sell your home or refinance your mortgage before the ARM’s introductory fixed period ends, an ARM might be a good option for you. Just make sure you understand how much your rate and payment could increase when the introductory period ends.

If you plan to stay in your home for a long time or simply prefer the stability of a fixed monthly payment, a fixed-rate mortgage may be more suitable for you.

How are mortgage rates determined?

Mortgage rates are determined by a combination of factors – some you can control, and some you can’t.

The main external factor is the economy. Interest rates tend to be higher when the US economy is booming and lower when it’s struggling. The two main economic factors that affect mortgage rates are employment and inflation. When employment numbers and inflation rise, mortgage rates tend to rise.

You can control your finance, until a certain point. the better you are credit score, debt to income ratioand Depositthe lower your rate should be.

Ultimately, your mortgage rate depends on what type of mortgage you get. Government-backed mortgages (such as FHA, Willand USDA mortgages) charge the lowest rates, while jumbo mortgages charge the highest rates. You’ll also get a lower rate with a shorter mortgage term.

How do I choose a mortgage lender?

First, think about what type of mortgage you want. The best mortgage lender will be different for a FHA mortgage that for a VA mortgage.

A lender must be relatively affordable. You shouldn’t need a super high credit score or a down payment to get a loan. You also want it to offer good rates and charge reasonable fees.

Once you’re ready to start buying houses, request preapproval with your three or four main options. A preapproval letter indicates that the lender would like to lend you up to a certain amount, at a specific interest rate. With a few pre-approval letters in hand, you can compare each lender’s offer.

When you apply for preapproval, a lender makes a hard credit inquiry. A lot of difficult inquiries on your report can hurt your credit score, unless it’s to shop around for the best rate.

If you limit your rate search to a month or so, the credit reporting agencies will understand that you’re looking for a home and shouldn’t hold each individual inquiry against you.

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