Home Mortgage Rates
|30-Year Fixed||15-Year Fixed||5/1 ARM Rate||30-Year Jumbo Rate|
Mortgage rates have been rising slowly over the past few months. Still, the rates for the 30-year fixed mortgage has been hovering in the low 3%, which is pretty good. The 15-year fixed mortgage rates have been even more stable, though rising slightly.
What Does This Mean For Home Buyers?
As we continue to watch the rates rise slowly, and with rumors that the Fed will increase lending rates, it’s clear that if you’re looking to buy a new home, buy now. Though rates will fluctuate, they may not get better than what we’re seeing currently. We can hope that rates will drop again, or remain stable, but looking at the economy at large leaves some doubts. With unemployment as it is, the hiring market is struggling, unemployment benefits have run out and the forbearance on evictions no longer in place things look less promising for optimal mortgage rates.
Are These Rates Guaranteed?
These interest rates are the basis from which banks begin. When applying for a mortgage or home-loan, lenders will gather all your financial information — including your credit score. This is the ultimate decider at what rate you’ll get on your mortgage. Individuals with credit scores of 740 or higher are pretty much guaranteed the lowest rates. As credit scores lower, the interest rates will rise. This still does not mean that a lender will give these rates. A simple search shows that most lenders are starting rates at around 3.5%.
What Other Factors Contribute To Mortgage Rates?
Though your credit score is the most important factor, there are several other things lenders look at when approving loans.
- Down Payment Amount
- Property Location
- Closing Costs
- Loan Type
- Loan Term
Most of these factors are inherent in the loan process, but if you’re willing to be patient in your hunt for a home, you can mitigate a higher mortgage rate. Choosing a home in a good neighborhood with rising prices, lower crime rates, lower taxes, etc. can be quite helpful. Increasing your down payment can be quite helpful too. Choosing an amenable lender can always help too. If you’ve worked with lenders before, head back to them to start the process.
Looking For A Home In Longmont?
If you’re looking for a new home in Longmont, we can definitely help you. We know many lenders in the area who can work with your financial situation. Get in touch with The Wise Team today to discuss at what point in the homebuying process you’re in.