Today’s Mortgage, Refinance Rates: Dec. 30, 2021

Fixed mortgage rates have risen slightly in recent months, but all mortgage rates are still at historic lows today.

At the beginning of November, the

Federal Reserve

announced that it would reduce its asset purchases, including mortgage-backed securities.

“Rates have remained relatively stable over the past month, continuing to rise gradually overall, which was to be expected based on the Federal Reserve’s interest rate cut,” Robert Heck told Insider , vice president of mortgages at Morty. “Until December, we should see this gradual increase continue, which represents a return to more realistic rates that reflect what we have seen in the years leading up to the pandemic. “

Mortgage rates are expected to stay relatively low until December, but they will likely increase in 2022, especially as the Fed raises the fed funds rate and decreases its buying.

Current mortgage rates

Current refinancing rates

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By inserting different rates and terms, you will also understand how much you will be paying over the life of your mortgage.

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 commission for borrowing money from a lender, expressed as a percentage. For example, you can take out a mortgage for $ 200,000 with an interest rate of 2.75%. You will repay the interest in addition to the amount borrowed, so you will repay 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 been at their lowest as the coronavirus pandemic hits the country.

There are, however, factors that you can control. The stronger your finances, the lower your rate is likely to be. You can get a better rate with a good credit score, a low debt-to-income ratio, and a substantial down payment.

How do 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 isn’t set in stone, but it can give you an idea of ​​what you’ll pay.

If you are ready to start buying homes, you can apply for pre-approval from a lender. The lender performs a difficult credit search and examines your financial details to lock in a mortgage rate.

How do you compare mortgage rates between lenders?

You can apply for a prequalification from several lenders. A lender looks at your finances in general and gives you an estimate of the rate you will pay.

If you are 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.

Applying for pre-approval requires strong credit application. Try to apply to multiple lenders within a few weeks, as consolidating all of 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 set a rate once you’re ready to actively buy homes. Most lenders freeze your rate for 60 to 90 days when they pre-approve you.