Mortgage Rates

May 27, 2016 02:07 PM Eastern

Refinance rates now in Ashburn, VA[Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

30 Year Fixed

Interest Rate
3.375%
APR
3.505%
Monthly Payment
$885
BNC National Bank
30 Year Fixed
Interest Rate
3.375%
APR
3.505%
Monthly Payment
$885
(855) 782-2865 Contact
BNC National Bank
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $50,000
Principal and Interest Payments $885
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $885
Lender Fees $3,216
Lender Credit $0
Total Closing Fees* $3,216
*Other 3rd party fees may apply
BNC National Bank
Email Lender

About the Lender

NMLS 418467BNC National Bank offers the security of a large organization while retaining the approachability and agility of a neighborhood bank. We offer Conventional, FHA, VA, USDA Rural Development and small farm loans at some of the most competitive rates in the industry!
BNC National Bank
Email Lender Write a Review

Lender Reviews

Excellent Experience with Paul Clipston

Yes, I recommend this lender

Excellent and straightforward loan officer. Quickly put together the most competitive offer. Paul was extremely responsive and helpful during the process, but not at all pushy.

By: Greg (Lititz, PA)

Two thumbs up!

Yes, I recommend this lender

Linda Gieseke is the absolute best. I would highly recommend her. From the start of our loan application to close of escrow she was always available, more knowledgable than any loan officer I've worked with in the past 25 years on 12 home loans, always kept her word, and always followed through. Don't waste your time shopping around or utilizing anyone else.

By: Trish (North Las Vegas, NV)

Excellent service

Yes, I recommend this lender

BNC was extremely easy to work with. They allow you to upload your documents to a secure site and make it easy to use. They are definitely staying current and making the process very easy for their customers.

By: Christy (Scituate, MA)
See All Reviews

15 Year Fixed

Interest Rate
2.750%
APR
2.837%
Monthly Payment
$1,358
BNC National Bank
15 Year Fixed
Interest Rate
2.750%
APR
2.837%
Monthly Payment
$1,358
(855) 782-2865 Contact
BNC National Bank
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $50,000
Principal and Interest Payments $1,358
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $1,358
Lender Fees $1,213
Lender Credit $0
Total Closing Fees* $1,213
*Other 3rd party fees may apply
BNC National Bank
Email Lender

About the Lender

NMLS 418467BNC National Bank offers the security of a large organization while retaining the approachability and agility of a neighborhood bank. We offer Conventional, FHA, VA, USDA Rural Development and small farm loans at some of the most competitive rates in the industry!
BNC National Bank
Email Lender Write a Review

Lender Reviews

Excellent Experience with Paul Clipston

Yes, I recommend this lender

Excellent and straightforward loan officer. Quickly put together the most competitive offer. Paul was extremely responsive and helpful during the process, but not at all pushy.

By: Greg (Lititz, PA)

Two thumbs up!

Yes, I recommend this lender

Linda Gieseke is the absolute best. I would highly recommend her. From the start of our loan application to close of escrow she was always available, more knowledgable than any loan officer I've worked with in the past 25 years on 12 home loans, always kept her word, and always followed through. Don't waste your time shopping around or utilizing anyone else.

By: Trish (North Las Vegas, NV)

Excellent service

Yes, I recommend this lender

BNC was extremely easy to work with. They allow you to upload your documents to a secure site and make it easy to use. They are definitely staying current and making the process very easy for their customers.

By: Christy (Scituate, MA)
See All Reviews
Capital One
15 Year Fixed
Interest Rate
2.750%
APR
2.946%
Monthly Payment
$1,358
(844) 326-5399 Contact
Capital One
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 60 Days
Down Payment $50,000
Principal and Interest Payments $1,358
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $1,358
Lender Fees $2,725
Lender Credit $0
Total Closing Fees* $2,725
*Other 3rd party fees may apply
Capital One
Email Lender

About the Lender

You can expect better with Capital One. Whether you need help with refinancing, a new home purchase, debt consolidation, or financing home improvements, your idea of better likely starts with savings - we maximize your savings with competitive rates and lower than average closing costs. But savings is only the start. We also strive to provide a better loan process - one that’s totally clear right from the start, with no hidden fees or unexpected surprises along the way. You can expect better service too - you’ll have a responsive team of dedicated mortgage specialists assigned and available to you every day, each member trained to anticipate and able to take care of all your needs.
Capital One
Email Lender Write a Review

Lender Reviews

Eugena Carpio review

Yes, I recommend this lender

They were bery good as aloan company keep lower rates and I was very satisfied

By: EugeneCarpio (Las Vegas, NV)

Review

Yes, I recommend this lender

Experienced and knowledgeable staff.

By: Cathleen (Santa Fe, NM)

Frustrating Loan Hub Experience

I tried using this lender in late 2015. It was a terrible experience. We struggled through this from August to October. I was told that the paperwork process would be easy as Capital One Home Loans uses online technology (Loan Hub) to communicate with the customer. I was told I could upload all of our required documents via a secure site. We tried on three different occasions to upload our documents, but only some of them appeared on the website. We were told that some documents were missing, even after we received confirmation that the documents were received. The online process was not being updated by the company, so we did not know at times where we were in the refi process. The initial customer rep took my preliminary info and then I was sent to another rep who rarely answered my emails or answered with no suggestions to help us. When I told him that the site would not let us upload documents or failed to show that our documents were uploaded, he told me to contact customer service. When I called the number he provided, the customer rep did not know what I was talking about and said he was not familiar with the new Capital One Home Loans website. I truly never had a more frustrating experience and I do not like to write negative reviews, but I must state my frustration with this company. We were made to feel as though once they had our business (we were submitting all required documents) that we were nothing to them. Because this company seemed to lack customer service and someone who could take the time to explain why the electronic document process was so tedious, I had to withdrawal my request for a refi.

By: Dave (Philadelphia, PA)
See All Reviews

5/1 ARM

Interest Rate
2.625%
APR
3.396%
Monthly Payment
$804
Capital One
5/1 ARM
Interest Rate
2.625%
APR
3.396%
Monthly Payment
$804
(844) 326-5399 Contact
Capital One
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 60 Days
Down Payment $50,000
Principal and Interest Payments $804
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $804
Lender Fees $2,725
Lender Credit $0
Total Closing Fees* $2,725
*Other 3rd party fees may apply
Capital One
Email Lender

About the Lender

You can expect better with Capital One. Whether you need help with refinancing, a new home purchase, debt consolidation, or financing home improvements, your idea of better likely starts with savings - we maximize your savings with competitive rates and lower than average closing costs. But savings is only the start. We also strive to provide a better loan process - one that’s totally clear right from the start, with no hidden fees or unexpected surprises along the way. You can expect better service too - you’ll have a responsive team of dedicated mortgage specialists assigned and available to you every day, each member trained to anticipate and able to take care of all your needs.
Capital One
Email Lender Write a Review

Lender Reviews

Eugena Carpio review

Yes, I recommend this lender

They were bery good as aloan company keep lower rates and I was very satisfied

By: EugeneCarpio (Las Vegas, NV)

Review

Yes, I recommend this lender

Experienced and knowledgeable staff.

By: Cathleen (Santa Fe, NM)

Frustrating Loan Hub Experience

I tried using this lender in late 2015. It was a terrible experience. We struggled through this from August to October. I was told that the paperwork process would be easy as Capital One Home Loans uses online technology (Loan Hub) to communicate with the customer. I was told I could upload all of our required documents via a secure site. We tried on three different occasions to upload our documents, but only some of them appeared on the website. We were told that some documents were missing, even after we received confirmation that the documents were received. The online process was not being updated by the company, so we did not know at times where we were in the refi process. The initial customer rep took my preliminary info and then I was sent to another rep who rarely answered my emails or answered with no suggestions to help us. When I told him that the site would not let us upload documents or failed to show that our documents were uploaded, he told me to contact customer service. When I called the number he provided, the customer rep did not know what I was talking about and said he was not familiar with the new Capital One Home Loans website. I truly never had a more frustrating experience and I do not like to write negative reviews, but I must state my frustration with this company. We were made to feel as though once they had our business (we were submitting all required documents) that we were nothing to them. Because this company seemed to lack customer service and someone who could take the time to explain why the electronic document process was so tedious, I had to withdrawal my request for a refi.

By: Dave (Philadelphia, PA)
See All Reviews
BNC National Bank
5/1 ARM
Interest Rate
2.500%
APR
3.407%
Monthly Payment
$791
(855) 782-2865 Contact
BNC National Bank
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $50,000
Principal and Interest Payments $791
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $791
Lender Fees $3,875
Lender Credit $0
Total Closing Fees* $3,875
*Other 3rd party fees may apply
BNC National Bank
Email Lender

About the Lender

NMLS 418467BNC National Bank offers the security of a large organization while retaining the approachability and agility of a neighborhood bank. We offer Conventional, FHA, VA, USDA Rural Development and small farm loans at some of the most competitive rates in the industry!
BNC National Bank
Email Lender Write a Review

Lender Reviews

Excellent Experience with Paul Clipston

Yes, I recommend this lender

Excellent and straightforward loan officer. Quickly put together the most competitive offer. Paul was extremely responsive and helpful during the process, but not at all pushy.

By: Greg (Lititz, PA)

Two thumbs up!

Yes, I recommend this lender

Linda Gieseke is the absolute best. I would highly recommend her. From the start of our loan application to close of escrow she was always available, more knowledgable than any loan officer I've worked with in the past 25 years on 12 home loans, always kept her word, and always followed through. Don't waste your time shopping around or utilizing anyone else.

By: Trish (North Las Vegas, NV)

Excellent service

Yes, I recommend this lender

BNC was extremely easy to work with. They allow you to upload your documents to a secure site and make it easy to use. They are definitely staying current and making the process very easy for their customers.

By: Christy (Scituate, MA)
See All Reviews
Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

Mortgage Rate Trends

Monthly | Daily

Mortgage Rate Lock Recommendation

May 27 2016
  •   Lock if closing in 15 days:
    Rates may be heading up

Don't forget, Monday is Memorial Day, so markets will be closed and this column will not appear.

Outlook

It looks as if mortgage rates might hold steady today or maybe edge up a bit. However, that forecast is based on early market trends, and those can turn on a dime, so there are never any guarantees with these predictions. Still, were we to be buying a home in May or June, we'd lock our rate if closing with 15 days, but float it if we had longer to wait. Read on for more.

Today

The big news today is this morning's release of the second (of three) estimates of gross domestic product (GDP) for the first quarter of 2016. The quarter-over-quarter change, expressed as a seasonally adjusted annualized rate, was +0.8 percent, compared with the initial reading of +0.5 percent. Before today's publication, most economists and analysts had expected an upward revision of the first estimate to +0.9 percent, according to Econoday, so this will be only very slightly disappointing news to markets.

Federal Reserve chair Janet Yellen will be speaking in public at Harvard University at lunchtime, after this column's deadline, and her remarks always have the potential to move markets and mortgage rates. Any such movements will probably depend on whether she changes perceptions of the likelihood of the Fed hiking its interest rates next month. The greater that likelihood, the higher mortgage rates might move today.

At about 10:00am (ET), yields on 10-year U.S. Treasury bonds, which are usually closely tied to mortgage rates, were slightly up, though that was hardly a convincing trend. While those yield trends on those bonds at that time of the morning frequently turn out to be accurate predictors of the direction of travel for the day's mortgage rates, they slow, accelerate or reverse sufficiently often that they can't be relied upon as a basis for making important financial decisions.

Major foreign stock-market indexes around the world were mixed earlier. Fifty-five minutes after opening, the S&P 500 was up by +0.23 percent. At 10:29am (ET), crude oil prices stood at $49.20/barrel, compared with the $49.66/barrel seen at roughly the same time yesterday.

Recent Mortgage Rates

Average rates for 30-year fixed rate mortgages (FRMs) fell yesterday by 2 basis points (a basis point is 1/100th of 1 percent – see below for a more detailed explanation), according to Mortgage News Daily. That returns them to where they were last Thursday and Friday.

The average rate nationwide for a 30-year FRM during the week ending May 26 was 3.64 percent with an average 0.5 point, according to Freddie Mac's weekly survey, published yesterday morning. It was 3.58 percent during the week ending May 19, and 3.57 percent seven days before that. This time last year, the average 30-year FRM came in at 3.87 percent.

In a statement accompanying the latest data, Freddie Mac chief economist Sean Becketti explained:

U.S. Treasury yields moved up in response to the Fed minutes release, which kept alive the possibility of a summer rate-hike. Mortgage rates followed, with the 30-year fixed-rate mortgage increasing 6 basis points to 3.64 percent. Despite this increase, May ends the month averaging only 3.60 percent, 1 basis point below April's average, and the lowest monthly average in 3 years.

Your Dilemma

Although the high volatility seen earlier in the year seems to have largely evaporated, the last few weeks suggest it may not have disappeared entirely. In any event, there's always a risk in choosing to float or lock your rate. True, there are opportunities for rewards should rates fall, but there is also a continuing danger of being trapped in an upward cycle that doesn't end before you have to lock

So those who are cautious may wish to lock today, trading the possibility of further falls in rates for the security of fixing what should still be an exceptionally good mortgage deal by historical standards. Those who like to gamble might prefer to wait awhile before locking, hoping there will be further falls ahead. Only you can decide on the risk with which you personally are comfortable.

The Bigger Picture

Unlike most other interest rates, those for mortgages (except ones for existing adjustable-rate mortgages) are largely determined by the supply of money into the market from investors and the demand for such loans from consumers. That supply is heavily affected by the amount of risk investors are prepared to sustain in their portfolios. When spooked by economic uncertainty, they tend to buy safer assets, including mortgage securities, which can result in an increased supply of product (cash) that drives down the price (rates). When they're more confident, they tend to invest in riskier but more profitable assets, which reduces the supply of money for home loans and pushes up rates. A second influence is perceptions of how inflation rates are likely to move over the long term, but that tends to be a less important factor in daily and short-term movements. None of this is to suggest the Federal Reserve doesn't affect mortgage rates; merely that it does so only indirectly.

The relationship between 10-year Treasury bonds and mortgage rates is more complicated. Investors generally view those bonds and mortgage securities as similarly secure havens for their money when they're spooked – with the bonds the safer of the two. That means they tend to buy or sell both at the same time, depending on their level of confidence in the U.S. and global economies. So many lenders refer to those particular Treasury yields when setting their rates. Usually, the relationship between 10-year Treasury yields and mortgage rates is surprisingly close, though sometimes they drift apart a little.

Some Questions Answered

Why, counterintuitively, do yields fall when prices for Treasuries rise? It's because you're buying a fixed return on your investment, and the more you pay for the right to that same fixed amount of money, the lower the yield you're going to get. That's a mathematical inevitability.

Do we really need to go on about analysts' consensus forecasts when we report economic data? Well, they're often relevant. That's because investors frequently trade ahead of actual data based on those forecasts. So sometimes the difference between what's reported and what was expected can be as important as that between the new number and that for the previous reporting period.

What is a basis point? Yes, it's 1/100th of 1 percent, but, when it comes to percentage points and basis points, these numbers are often mind-numbingly confusing. To give a purely theoretical example, suppose the best mortgage rate you could have gotten yesterday was 6.00 percent (let's hope it wasn't!), and that rate subsequently dropped by a single basis point. Your new rate would be 5.99 percent.

The Longer Term

In its latest (May) Housing Forecast, Fannie Mae predicts the rate for 30-year FRMs will average 3.6 percent this quarter, and rise to 3.7 percent through the following nine months. It expects that to inch up to a 3.8 percent average for the last three quarters of 2017.

Freddie Mac's economists are less optimistic. In their latest Outlook report, published last week, they forecast that rates for 30-year FRMs will average 3.9 percent "for full year 2016." Given those rates have been much lower than that for all but one week so far this year, they'd have to climb to 4.0 percent and above in coming months to achieve that average. And the Mortgage Bankers Association seems to concur. In its latest Mortgage Finance Forecast, it reckons that same average rate will creep up each quarter for the foreseeable future, reaching 4.1 percent in the last three months of this year, and hitting 4.8 percent by the last quarter of 2017.

You may prefer to see all these numbers as a sign of how difficult it is to forecast rates in this challenging economic environment, rather than as reliable guides to the future.

What Does it Mean to "Lock" Your Mortgage?

"Locking" your mortgage means that you and your lender have agreed on an interest rate and price for your home loan. Once your loan is locked, that's the rate and price you get, regardless of what happens in the financial markets. If rates go up, you're protected but if rates go down, you won't benefit either -- you close your loan at the rate you've locked and you can’t change it. Locks have expiration dates ranging from 30 to 60 days or more, and the longer your lock period, the more it costs. If you don't close your loan on time, you could end up paying a higher interest rate.

When Should You Lock?

You can lock in your loan at any time during the process. Until you lock your interest rate, you are said to be "floating" your mortgage. The only rule is that you have to lock in before you can close on your purchase or refinance.

The decision to lock or float your loan can have a long term impact so it’s important you make the right choice. That’s why we offer a quick rundown of the key factors that drive mortgage rates today and everything you need to know.

Mortgage Rates by State

Mortgage rates can vary a lot between lenders on any given day. So, if you only get one mortgage quote, you won't have any idea if there's a better deal out there. That's why the best way to get a mortgage rate it to request quotes from multiple lenders and compare interest rates, loan terms and closing costs. It puts you on in charge and keeps the banks competing to get you the best rate possible. Remember, even .1 percent can amount to thousands of dollars over the course of a loan. Make sure you shop around!

Find Rates In Your State
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