Today’s mortgage and refinance rates: February 5, 2022

Fixed rates reach their highest point in a year

Fixed mortgage rates increased in the first few weeks of January, but they’ve settled down over the last two weeks. Data from Freddie Mac shows that 30-year and 15-year fixed rates have risen to their highest points in 12 months. Adjustable rates have been going down in general over the last year, although they are up this month:

You could get a lower adjustable rate than fixed rate today. But because rates are gradually rising, your rate would likely be higher after your adjustable-rate mortgage intro rate period ends. Fixed rates are still relatively low today, so they’re still worth considering.

Mortgage rates today

Mortgage refinance rates today

Mortgage calculator

You can plug today’s mortgage interest rates into our free mortgage calculator to see how different rates will impact your monthly payments.

You can plug today’s mortgage interest rates into our free mortgage calculator to see how different rates will impact your monthly payments.

How do mortgage rates work?

A mortgage interest rate is the fee a lender charges for borrowing money, expressed as a percentage. For example, you get a mortgage for $200,000 with an interest rate of 2.75%.

Mortgage rates can be either fixed or adjustable. A fixed-rate mortgage keeps your rate the same for the entire length of your loan. An adjustable-rate mortgage locks in your rate for the first few years or so, then changes it periodically. With a 7/1 ARM, your rate would stay steady for the first seven years, then shift annually.

The longer your mortgage term, the higher your rate will be. For instance, you’ll pay more on a 30-year mortgage than a 15-year mortgage. Longer terms do come with lower monthly payments, though, because you’re spreading out the repayment process.

How do I get the best mortgage rate?

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

Consider fixed vs. adjustable rates. You may be able to get a lower introductory rate with an adjustable-rate mortgage, which can be good if you plan to move before the intro period ends. But a fixed rate could be better if you’re buying a forever home because you won’t risk your rate going up later. Look at the rates your lender offers and weigh your options.Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to boost your credit score or lower your debt-to-income ratio, if necessary. Saving for a higher down payment also helps.Choose the right lender. Each lender charges different mortgage rates. Picking the right one for your financial situation will help you land a good rate.

Read the original article on Business Insider

Personal Finance, Mortgages, Today’s Mortgage Rates, Mortgages, mortgage rates, Mortgage Refinancing, mortgage calculator, PFI Guide, Personal Finance Insider, pfi, PFI-XAMP, PFI Related Content Module, service graphics, Alyssa Powell, PFI Bankrate, PFI Money

All Content from Business Insider

Leave a Comment

Your email address will not be published.