Mortgage of the day, refinancing rate: May 2, 2022

Mortgage of the day, refinancing rate: May 8, 2022

Mortgage rates continue to hover just above 5%. Given that inflation remains high and


Federal Reserve

tightens its monetary policy in response, rates are not expected to fall any time soon.

“I think rates above 5% will become the norm, and I don’t see any significant downward movement in the near future,” said Ralph DiBugnara, president of Home Qualified and senior vice president of Cardinal Financial.

However, it is unclear to what extent they could increase further. DiBugnara says he thinks rates will continue their upward trend but start to stabilize by the end of June.

Current Mortgage Rates

Current refinance rates

mortgage calculator

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.

mortgage calculator

$1,161
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.

Is it better to rent or buy now?

Whether you should rent or buy depends on current costs in your area and your lifestyle. In some parts of the country, it’s possible to get a mortgage with a monthly payment below the average rent, but that’s not true everywhere, especially if you’re in a high-cost urban area.

If you’re concerned that your rent will continue to rise, it might be a good idea to consider buying a home. Although rents can go up from year to year, if you have a fixed rate mortgage, you know you’ll be paying the same amount every month for as long as you have your mortgage.

“I still believe we’re in a buy-or-own market,” DiBugnara says. “Higher rates mean less buying power in some cases, but rents are rising as fast or faster than house prices due to inflation, making buying the most ideal option. for many.”

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 hit historic lows during the pandemic as the Federal Reserve eased monetary policy to stimulate the economy. But as the central bank struggles to fight inflation, rates have risen to over 5%.

Your mortgage rate will be influenced by both current rate trends and factors you can control. With a good credit rating, a low debt-to-equity ratio, and a substantial down payment, you can get a better rate.

How can I find personalized mortgage rates?

Some mortgage lenders allow you to customize your mortgage rate on their websites by entering your


deposit

amount, postal 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. 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 multiple lenders within a few weeks, because consolidating all your hard credits in the same amount of time will hurt your credit score less.

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