Mortgage rates are still relatively low, but they have already started to rise in 2022. In December 2021, the
announced that it would reduce its asset purchases (including the purchase of mortgage-backed securities) twice as fast as it had previously planned. He also plans to raise the federal funds rate three times in 2022.
These new plans mean rates are likely to rise this year. If you’re financially ready to buy a home, you might want to lock in a mortgage rate while rates are still low.
Current Mortgage Rates
Current refinance rates
Use our free mortgage calculator to see the impact of today’s mortgage rates on your monthly payments. By plugging in different rates and terms, you’ll also understand how much you’ll pay over the life of your mortgage.
Your estimated monthly payment
- pay one 25% a higher down payment would save you $8,916.08 on interest charges
- Lower the interest rate by 1% would save you $51,562.03
- Pay an extra fee $500 each month would reduce the term of the loan by 146 month
Click “More Details” for tips on how to save money on your long-term mortgage.
What is a mortgage rate?
A mortgage interest rate is a fee for borrowing money from a lender, expressed as a percentage. For example, you can take out a $200,000 mortgage with an interest rate of 2.75%. You will repay the interest along with the amount borrowed, so you will be paying back more than $200,000.
How are mortgage rates determined?
In general, mortgage rates tend to be high when the US economy is booming and low when it is struggling. Mortgage rates have hit historic lows as the coronavirus pandemic affects the country.
However, there are factors you can control. The stronger your finances are, the lower your rate is likely to be. You can get a better rate with a good credit rating, a low debt-to-equity ratio, and a substantial down payment.
How can I find personalized mortgage rates?
Some mortgage lenders allow you to customize your mortgage rate on their websites by entering your down payment amount, zip code and credit score. The resulting rate is not fixed, but it can give you an idea of what you will pay.
If you’re ready to start buying homes, you can get pre-approved from a lender. The lender makes a firm credit application and reviews your financial details to lock in a mortgage rate.
How to compare mortgage rates between lenders?
You can apply for prequalification with several lenders. A lender takes a general look at your finances and gives you an estimate of the rate you will pay.
If you’re further along in the home buying process, you have the option of seeking pre-approval from multiple lenders, not just one company. Your mortgage rate is locked in for a fixed term when you are pre-approved. By receiving letters from more than one lender, you can compare personalized rates.
The pre-approval request requires a firm credit application. Try to apply to several lenders within a few weeks, because consolidating all your hard credits in the same amount of time will hurt your credit score less.
When should I lock in a mortgage rate?
You’ll probably want to get pre-approved and lock in a rate once you’re ready to actively shop for homes. Most lenders lock your rate for 60-90 days when they pre-approve you.