Mortgage rates have been getting a little higher over the last few months, but they’re still at all-time lows. Mortgage rates tend to be low when the economy is struggling, and the coronavirus pandemic has hurt the US economy. The
has been aggressively purchasing assets, including mortgage-backed securities, to help the economy.
But the Fed announced this week that it will start tapering purchasing at twice the rate it initially planned. It also plans to increase the federal funds rate three times in 2022. As a result, mortgage rates will probably go up in 2022.
Today’s mortgage and refinance rates
Today’s mortgage rates
Today’s refinance rates
Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.
How do mortgage rates work?
A mortgage interest rate is the fee a lender charges for borrowing money, expressed as a percentage. For example, you get a mortgage for $300,000 with an interest rate of 2.5%.
Mortgage rates can be either fixed or adjustable. A fixed-rate mortgage keeps your rate the same for the entire length of your loan. An adjustable-rate mortgage locks in your rate for the first few years or so, then changes it periodically. With a 7/1 ARM, your rate would stay steady for the first seven years, then shift annually.
The longer your mortgage term, the higher your rate will be. For instance, you’ll pay more on a 30-year mortgage than a 15-year mortgage. Longer terms do come with lower monthly payments, though, because you’re spreading out the repayment process.
How do I get the best mortgage rate?
Here are a few steps you can take to get the lowest mortgage rate possible:
- Consider fixed vs. adjustable rates. You may be able to get a lower introductory rate with an adjustable-rate mortgage, which can be good if you plan to move before the intro period ends. But a fixed rate could be better if you’re …….