Today’s Mortgage and Refinance Rate: July 8, 2021



Today’s mortgage and refinance rates are generally low, although fixed rates are significantly lower than adjustable rates. It could be a good day to lock in a historically low rate.

Mortgage rates are not expected to rise significantly until employment and inflation in the United States begin to improve steadily. Marvin Loh, Senior Global Macro Strategist at State Street, told Insider that rates are expected to stay low until late summer or even fall.

So if you’re not yet ready to buy or refinance, you have a little more time to take advantage of the low interest rates.

How mortgage rates work

A mortgage interest rate is the commission a lender charges for borrowing money, expressed as a percentage. For example, you get a mortgage loan of $ 300,000 with an interest rate of 2.5%.

Mortgage rates can be fixed or adjustable. A fixed rate mortgage keeps your rate at the same level for the life of your loan. A variable rate mortgage locks in your rate for the first few years or so, then changes it periodically. With an ARM 7/1, your rate would stay stable for the first seven years, then change every year.

The longer the term of your mortgage, the higher your rate will be. For example, you will pay more with a 30-year mortgage than a 15-year mortgage. However, longer terms come with lower monthly payments as you spread out the repayment process.

Today’s Mortgage and Refinance Rates

Mortgage rates today conventional rates; RedVentures government guaranteed rates.

Today’s refinance rate conventional rates; RedVentures government guaranteed rates.

How to get the best mortgage rate

Here are some steps you can take to get the best possible mortgage rate:

  • Get a fixed rate mortgage. You can ask your particular lender what their fixed rates are versus adjustable rates. But in general, fixed rates start lower than adjustable rates. Rates are also at historic lows, so you would see a low rate instead of risking an increase later with an ARM.
  • Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to increase your credit score or lower your debt-to-income ratio, if necessary. Saving for a larger down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the one that is right for your financial situation will help you get a good rate.

How to choose a mortgage lender

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

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

Once you’re ready to start shopping for homes, apply for pre-approval with your top three or four choices. A pre-approval letter indicates that the lender wants to lend you up to a certain amount, at a specific interest rate. When you are pre-approved, your mortgage rate is locked in for 60 to 90 days. With a few pre-approval letters in hand, you can compare each lender’s offer.

When you apply for pre-approval, a lender does a serious credit check. A bunch of serious inquiries on your report can hurt your credit score, unless it’s to buy the best rate.

If you limit your rate purchases to about a month, the credit bureaus will understand that you are looking for a home and should not hold each individual claim against you.


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