Current 30-year fixed mortgage refinance rates are averaging: 7.71%
The current average rate for a 15-year fixed mortgage refinance is: 7.12%
See whether refinancing makes sense for you using our mortgage refinance calculator.The current mortgage interest rates forecast is for rates to continue moving closer to 6% as the year progresses. If the Federal Reserve cuts rates in the latter half of the year — as many market-watchers expect — we could even see rates dip below that 6% threshold.
Inflation has certainly come down over the last year but, as of this writing, it remains stubbornly above the Fed’s desired level of 2%. This means it’s likely that rate cuts aren’t right around the corner. Fed officials have been adamant about the need for caution, since if the Fed cuts rates too soon, it could quickly undo the progress that the economy has made so far.
A winning strategy for homebuyers is to ignore the factors determining mortgage rates that are out of your control, and focus on the ones that’ll get you results.
Here are a few steps you can take right now to get the best mortgage rate:
When should I lock in my mortgage rate?If you have a loan estimate in hand and you’re ready to move forward, you should request that the lender give you a mortgage rate lock. This will hold the rate quoted in that loan estimate for you — if you don’t get a lock, your rate could increase before you make it to closing.
This program from the Department of Housing and Community Development (DHCD) offers up to $202,000 through a second mortgage that can be used to cover your entire down payment, as well as up to $4,000 to be used for closing costs. Moderate-income households will begin making monthly, interest-free payments after five years of ownership, and must fully repay the loans within 40 years. Low- and very low-income households won’t have to make any payments. However, if you sell, refinance or move out of the home, you’ll have to repay the assistance immediately.
Borrowers must:
Be a first-time homebuyer
Be the head of the household
Earn within the program’s income limits
Contribute $500 or 50% of your liquid assets over $3,000 (whichever is greater)
Have “good” credit, which is usually defined as a FICO Score of 670 and above
People who have never owned a home
People who haven’t owned residential real estate in the last three years
DC Open Doors can help you purchase a home by joining the buying power of a low-interest-rate mortgage with a second loan that covers the entire down payment amount. Both first-time homebuyers and repeat buyers can qualify, and you aren’t required to be a current D.C. resident.
Borrowers must:
Have a minimum 640 credit score
Earn no more than $199,200 per year
Purchase a home with a first mortgage for no more than $766,550
DC4ME is a special first-time homebuyer program for government employees (and their co-borrowers) who want to purchase a home in the District of Columbia. The program provides a purchase mortgage with a low interest rate and, optionally, another loan for down payment funds up to 3%.
Borrowers must:
Earn no more than 120% of the area median income (maximum of $199,200)
Purchase a home for no more than $766,550
Have a 640 minimum credit score
Take a homebuyer education course
Get the full details about each program at the DC Housing Finance Agency’s website.→ Washington, D.C., conventional loans. If you have strong credit, your first consideration should be a conventional loan. They typically offer good value for borrowers who can qualify for them, but you’ll need to meet the minimum requirements set by Fannie Mae and Freddie Mac — including a 620 minimum credit score.
→ Washington, D.C., FHA loans. If conventional loan requirements aren’t within reach, your next stop should be an FHA loan. They’re far more forgiving and allow borrowers to qualify with credit scores as low as 500. You’ll have to make a 10% down payment if your score is between 500 and 579 — but if you have at least a 580 score, you’re able to put down only 3.5%.
→ Washington, D.C., VA loans. VA loan requirements offer even more flexibility than FHA loans, but they’re only available to qualified military borrowers. For those with full entitlement, there’s the option to purchase or refinance a home with 0% down.
→ Washington, D.C., streamline refinances only apply if you’re looking at an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL). These loan programs let you refinance from an FHA loan into an FHA loan, or from a VA loan into another VA loan. They get their “streamline” name from the fact that borrowers typically spend less time chasing down paperwork or jumping through additional hurdles, compared to other refinance types.
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