September 19, 2021

MP Now News

Mortgage News

June 12, 2021| Rates Barely Budge

Mortgage and refinance rates are generally low today, so it could be a good day to secure a low interest rate.

We show the national average mortgage rates. Your exact price will depend on where you live. So check out our guide for each state below.

Your mortgage rate also depends on your finances and what kind of mortgage you are getting. Overall, however, mortgage rates are at historic lows.

Conventional Tariffs from Money.com; government-sponsored rates from RedVentures.

Conventional Tariffs from Money.com; government-sponsored rates from RedVentures.

Mortgage and refinance rates by state

Check the current prices in your state at the links below.

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
new York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington, DC
West Virginia
Wisconsin
Wyoming

Mortgage rates are largely determined by the economy. Interest rates are higher when the US economy is thriving and lower when it is in trouble.

Employment and inflation are the two main economic factors that affect mortgage rates. As employment and inflation rise, mortgage rates tend to follow suit.

However, you do have some power over your mortgage rate. Here are the factors you can control:

  • credit-worthiness. The higher your credit rating, the lower your mortgage rate should be. To improve your score, focus on paying all your bills and paying off debts on time.
  • Debt-Income Ratio. Your DTI ratio is the amount you pay for your debt each month divided by your gross monthly income. The lower your DTI ratio, the better. The minimum DTI ratio depends on the lender and the type of mortgage you are getting, but is usually between 36% and 50%. If your ratio is even lower than the lender’s minimum, you could get a better interest rate.
  • deposit. Depending on the type of mortgage you are getting, you may need 0% to 20% for a down payment. If you can pay more than the minimum deposit you will likely get a lower rate.
  • Type of mortgage. Prices on compliant mortgages (which you probably refer to as “regular mortgages”) are already low. You pay less for a government supported mortgage through the FHA, become, or USDA. You pay a higher price for a Jumbo mortgage.
  • Mortgage term. The shorter your mortgage term, the lower your interest rate will be. For example, you pay less for a 15 year term as a 30 year term. Note, however, that your monthly payments will be higher in less time.

It is usually a good idea to set your mortgage rate when you are ready to start your home purchase.

To secure your tariff, Apply for pre-approval with a lender. Once you’ve received your pre-approval letter, your tariff will typically be locked for 60 to 90 days.

Getting a pre-approval letter is useful before making an offer on a home. Showing the seller a pre-approval letter is an indication that you are a competitive buyer who is in good financial position and can give your application an edge over other offers.

About the authors

Laura Grace Tarpley is an editor at Personal Finance Insider, specializing in mortgages, refinancing and lending. She is also a certified trainer for personal finance (CEPF). In her five years covering personal finance, she has written extensively on credit management options.

Ryan Wangman is a Review Fellow at Personal Finance Insider reporting on mortgages, refinances, bank accounts, bank reviews, and loans. In his previous personal finance writing experience, he wrote about creditworthiness, financial literacy, and home ownership.