September 28, 2021

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Today’s Mortgage and Refinance Rates: May 16, 2021

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Most mortgage rates have increased since last Sunday but have decreased since that time in the last month. Mortgage rates are still low overall, so this might be a good time to set an interest rate.

Mortgage rates should stay relatively low for at least a few months so you don’t have to rush to take advantage of the low interest rates if you’re not ready.

But if you know you are about to buy, you should probably start the process from Application for prior approval and lock a rate. According to a study by RedfinCurrently, more than half of homes in the US sell in two weeks or less. Once you are ready to buy, you want to be able to act quickly.

Conventional Rates from Money.com; RedVentures Government Supported Interest Rates.

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The lowest mortgage rate today is the 15-year fixed rate.

prices for conventional mortgagesWhat you can think of as “normal mortgages” are already low right now. But government-sponsored mortgages through that FHA and become As a rule, you pay even lower prices, depending on which term you choose. State mortgages are great options if you qualify.

Conventional Rates from Money.com; RedVentures Government Supported Interest Rates.

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Refinance rates tend to be higher than purchase rates, but are generally still low.

Mortgage rates have increased since last weekend but are still low overall. It might be a good time to set a rate.

But prices are unlikely to go up anytime soon, so you don’t have to rush to take advantage of the low rates. Prices are likely to stay low for several months, if not longer. You may have time to improve your finances in order to get a better interest rate.

To get the best possible price, consider the following steps before applying:

  • Increase Your Credit Score by making timely payments, paying off debts, or aging your credit. The higher your score, the lower your interest rate is likely to be.
  • Save more for a deposit. The minimum deposit you need depends on it what kind of mortgage you’re after However, a higher deposit usually results in a lower rate.
  • Lower your debt-to-income ratio. Your DTI ratio is the amount you pay for debt each month divided by your gross monthly income. Most lenders want a rate of 36% or less. To lower your quota, pay off debts or think about ways to increase your income.

You can secure a low interest rate now if your finances are in good shape, but there is no need to rush to get a mortgage or refinance if you are not prepared.

Mortgage rate development

Most mortgage rates have increased since last Sunday, but have decreased since last month.

Refinancing rate trends

Refinance rates have increased since last weekend, but most rates have decreased since that time in the last month.

A 15 year fixed mortgage locks your interest rate for the entire 15 years you spend repaying your loan.

A 15 year fixed rate mortgage has higher monthly payments than a 30 year fixed rate mortgage because you pay them off Mortgage capital in half the time.

But a 15-year mortgage ultimately costs less than a longer term. You pay off the mortgage in a few years and get a lower interest rate.

With a 30 year fixed mortgageYou will repay your loan over 30 years and your interest rate will remain locked for the entire time.

You pay a higher interest rate on a 30-year fixed-rate mortgage than a short-term fixed-rate mortgage. However, you can pay a lower interest rate on a 30-year fixed-rate mortgage than you would on a variable-rate mortgage.

The monthly payments are lower for 30-year mortgages than for shorter terms because you spread the payments over a longer period of time.

With a term of 30 years, you pay more interest in the long term than with a shorter term, because a) the interest rate is higher and b) you pay interest for longer.

A fixed rate mortgage fixes your interest rate for all of the time that you pay off your mortgage. However, with a variable rate mortgage, you pay a constant rate for a set period of time. After that, your rate will change regularly. A 10/1 ARM will fix your rate for a decade, then your rate will fluctuate annually.

Although ARM rates are currently at rock bottom, you may still want to get a fixed rate mortgage. The 30 year fixed rate is lower than the ARM rate, so this could be an excellent opportunity to secure a low rate with a fixed rate mortgage. That way, you no longer have to worry about your rate going up with an ARM in the future.

If you are considering getting an ARMAsk your lender about your interest rates if you would choose a fixed rate versus a variable rate mortgage.

We also display interest rates for FHA and VA mortgages. These are two types of government-supported mortgages. Another type is a USDA mortgage, a less common loan for buyers who live in rural areas.

Government sponsored mortgages are sponsored by government agencies. If you default on your payments, the agency will pay back the lender. Because these mortgages are less risky than traditional mortgages, lenders have fewer requirements on your creditworthiness, debt-to-income ratio, or down payment. They also often have lower interest rates.

Government supported mortgages can be cheap deals if you qualify. Here are your options:

  • FHA mortgage: This type of loan is not limited to any particular type of person. However, it is especially useful if your creditworthiness is insufficient to qualify for a traditional mortgage.
  • VA mortgage: You can qualify if you are an active military member or a veteran.
  • USDA mortgage: You are eligible if you live in a rural area and you fall below a certain income limit.

Mortgage and refinancing rates by federal state

Check the latest 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

About the authors

Laura Grace Tarpley is an editor at Personal Finance Insider, specializing in mortgages, refinancing and lending. She is also a certified teacher for personal finance (CEPF). During her five years in the personal finance arena, she has written extensively on ways to navigate credit.

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