3 Practical Things You Can Control About Your Mortgage Rate Right Now

The useful part

As you watch mortgage rates tick up again lately, it's fair to wonder if you should just hit pause and wait for them to go down. Mortgage News Daily data shows how rates have risen this year (see graph below): As Danielle Hale, Chief Economist at Realtor.com, explains: "The pressure on mortgage rates was here even before the Fed rate hike, and it doesn't show signs of relenting.

How it works

• Work on Your Credit Score Your credit score plays a big role in the rate you qualify for, and even a small improvement can make a real difference in your monthly payment.
• As Freddie Mac puts it: " Generally, the higher your credit score the more options will be available to you, including better loan terms and a lower interest rate.
• If you're not sure where your score stands right now, or how to improve it, talk to a trusted loan officer.
• If a lower rate is your goal, it may be worth asking your agent to show you some new build communities that are offering this type of incentive locally.
• Working with a trusted lender can help you lock in the best rate you qualify for.

What to take from it

rates on fixed-rate loans are typically higher than introductory rates on adjustable-rate loans because the fixed-rate lender takes on the risk that rates could increase during the loan's term. Likewise, government-backed FHA, VA and USDA loans sometimes have lower rates because they have a government guarantee or insurance that cuts the lender's risk. According to Realtor.com, buyers of newly built homes landed a lower average rate last quarter than buyers of existing homes (see graph below):

Example or evidence

• Many builders are buying down mortgage rates, which lowers your monthly payment.
• Conventional, FHA, VA, and USDA loans each come with their own requirements and rates, and your term (15, 20, or 30 years) changes both your payment and the total interest you'll pay.
• A fixed-rate loan holds the same rate over time, while an adjustable-rate loan usually starts lower and can move later on.
• " It's important to explore your options with a lender to see what makes the most sense for you.

Details worth keeping

3 Things You Can Actually Control About Your Mortgage Rate Right Now. Island Group Realty 3 Things You Can Actually Control About Your Mortgage Rate Right Now 22 Sep 3 Things You Can Actually Control About Your Mortgage Rate Right Now Posted at 03:04h in Real Estate News and Tips by Margarita Villoch 0 Likes If you're trying to buy a home, affordability is probably what keeps you up at night. For now, though, they're headed the other way.

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