Current mortgage rates, February 14, 2022 | Rates have increased

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Looking at today’s mortgage rates, a number of notable rates have gone up. The averages for 30-year and 15-year fixed mortgages both increased slightly. We also saw an uptick in the average 5/1 Adjustable Rate Mortgage (ARM) rate.

Mortgage rates are currently:

Where are mortgage rates going this year?

This year has started with mortgage rates that have reached near pre-pandemic levels. Two of the factors behind the rate hike are high inflation and a recovering economy. But new variants of the coronavirus, such as Omicron, have introduced a level of uncertainty to markets and could potentially limit rising interest rates. Among the experts, there is almost a consensus that mortgage rates will go up; the actions of the Federal Reserve to fight inflation can contribute to this process.

What do current mortgage rate trends mean for homebuyers?

Despite this, mortgage interest rates are still abnormally low, from the perspective of historical mortgage rates.

New home buyers can benefit from low interest rates to help offset rising home prices. The problem is that, in many cases, interest rates are not low enough to compensate for high house prices. As rates slowly increase, homebuyers may need to adjust their home buying budget to account for the additional cost.

What to know about loan fees

The catch-all term for the fees you pay to get a mortgage is closing costs. Everything from prepaid property taxes to your appraisal fees falls into this category. Some closing costs vary by loan size, but overall you can pay 3% to 6% of the total loan balance. It’s important to pay attention to the closing costs you pay because the higher your closing costs, the higher your annual percentage rate. (APR) will be.

Current Mortgage Refinance Rates

Refinancing has become a bit more expensive today as 30-year and 15-year fixed refinance mortgages have seen their average rates increase. If you’re considering a 10-year refinance loan, just know that average rates have come down.

Today’s refinance rates are:

Compare nationwide home loan rates from various lenders.

30 Year Fixed Rate Mortgage Rates

For a 30-year fixed rate mortgage, the average rate you’ll pay is 4.00%, up 5 basis points from seven days ago.

15-year fixed mortgage interest rate

The median rate for a 15-year fixed mortgage is 3.34%, up 3 basis points from the same time last week.

The monthly payment on a 15-year fixed rate mortgage is, without a doubt, a much higher monthly payment than you would get on a 30-year mortgage with the same interest rate. But 15-year loans have huge advantages: you’ll pay thousands less in interest and pay off your loan much sooner.

5/1 ARM interest rate

A 5/1 ARM has an average rate of 2.88%, up 3 basis points from a week ago.

An ARM is ideal for individuals who will refinance or sell before the rate changes. If not, their interest rates could end up being significantly higher after a rate adjustment.

For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that depending on your loan rate adjustment, your payment may increase significantly.

How our mortgage interest rates are calculated

We use daily rate data from Bankrate for our mortgage rate trends. These overnight rates are based on a specific personal financial profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.

This table shows current average rates based on information provided to Bankrate by lenders nationwide:

Updated February 14, 2022.

Pro tip

Plug and play your desired interest rate and the rest of your loan details into NextAdvisor’s mortgage calculator to get a good idea of ​​what your monthly payment will be.

Frequently Asked Questions (FAQ) About Mortgage Rates:

How to get the best mortgage rate

To get the absolute best interest rate, you need to focus on two main things: credit score and loan-to-value (LTV).

Having a credit score of 750 or higher will help you get the lowest rate. However, even a score over 700 can get you a noticeable rate reduction compared to a lower credit score. For a credit score above 800, the interest rate reduction will not be significant.

Lenders offer the biggest discounts on mortgage rates to borrowers who are considered less risky. A surefire way to signal that you’re a less risky borrower is to make a larger down payment at the closing table. A down payment of 20% or more will save you money in two ways: with a lower mortgage rate, and you can avoid paying for private mortgage insurance (PMI).

Is it a good time to lock in my mortgage rate?

It is impossible to know which direction mortgage rates will go from one day to the next. That’s why a mortgage rate lock is such a useful tool, because it protects you if rates go up. And since interest rates are relatively low right now, you should lock in your rate as soon as possible.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for 30-60 days, which will usually give you plenty of time to close before the lock expires. If something happens and you need to extend your rate lock, ask about fees, as many lenders charge a fee to extend a rate lock.

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