Mortgage Rates

July 22, 2017 06:38 AM Eastern

Refinance rates now in Woodbridge, NJ [Change this]

  • ?
    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.
    ?
    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.
  • ?
    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.
  • ?
    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.
  • Refresh Rates
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

July 21, 2017 - Float

Today's Outlook

Just as at this time yesterday, it is looking as if mortgage rates might edge down today or perhaps hold steady. However, that forecast is based on early market trends and those frequently change speed or direction during the day. So a sharper fall or even a rise remain possible. Our prediction could be undermined in coming hours by economic, political, and geopolitical news that might affect the American and global economies, though little is scheduled for coming hours. Still, if we were currently buying a home, we would float our rate now and revisit that decision on Monday morning. Read on to discover why you might prefer to lock.

Average rates for 30-year fixed-rate mortgages were unchanged yesterday, remaining at a low for July. However, they remain noticeably higher than at some times earlier in the year, including toward the end of June. Indeed, if you glance at the chart above, you will see the previously firm downward trend since March sharply reversed in June. Rates could fall further in a sustained way but there is no guarantee of that. What happens next will depend on whether relevant news becomes more or less positive in coming days. Absent other factors, good news tends to push mortgage rates up, while bad news usually pulls them down.

Many experts would urge you to look now, particularly if you need to lock anyway within the next few weeks. Others might suggest you continue to float, providing you have time to ride out the coming near-inevitable ups and downs. They perceive recent rises as having mainly been the results of technical stimuli (to do with government bond markets in Europe) rather than firm evidence of improving health in the underlying U.S. economy. But neither group of experts has a crystal ball and there remains a real possibility of continuing volatility. So, either way, you are taking a chance. Only you can decide on the level of risk with which you are comfortable.

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 Types

The type of mortgage you get will affect the type of mortgage rate you qualify for. See below for the most common types of mortgages and what rates you could be eligible for.

Conventional Mortgage

A conventional mortgage is one that is not insured by a government agency, such as HUD/FHA. It's typically a fixed-rate 30-year loan and the buyer must put down at least 20 percent of the purchase price of the home to qualify. Conventional mortgages typically come with excellent mortgage rates because of the down payment and stringent credit score requirements.

FHA Mortgage

FHA mortgages are perfect for buyers with less than 20 percent down, a less-than-ideal credit score or first-time home buyers. Since these loans are backed and insured by the federal government, lenders are able to offer low, competitive rates to buyers. You can view current, up-to-date rates from our top-rated FHA lenders to see what type of rate you'd be eligible for.

VA Mortgage

VA mortgages are reserved for veterans, active-duty personnel, Reservist/National Guard members, and their eligible surviving spouses. VA loans are incredibly attractive to those that qualify because of their no down payment requirement, no mortgage insurance premiums, low closing costs and low, negotiable interest rates.



Mortgage Process

LendingTree makes getting a mortgage easy! Below are the steps to take to make your mortgage process as seamless as possible:



How Much House Can I Afford?

Use our Home Affordability Calculator to see how much house you can afford. Simply plug in your gross annual income, down payment amount, monthly debts and credit score. Our calculator will give you a range of conservative home prices up to aggressive ones.

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
Map of the United States. CA NV NC VA WV KY CT CT SD CO NE ND WA OR ID MT WY UT AZ NM KS OK TX HI MN IA MO AR WI IL MS MI MI OH TN AL ME NH NH VT VT NY MA MA RI RI PA NJ MD NJ MD DE DE DC SC GA FL HI HI HI HI AK AK AK IN LA