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The median interest rate on a 30-year fixed-rate mortgage is 5.990% as of September 11, which is 0.010 percentage points lower than yesterday. Additionally, the median interest rate on a 15-year fixed-rate mortgage is 5.250%, which is also unchanged from yesterday.Investors are hoping for a half-point interest rate cut at the Federal Reserve’s meeting in mid-September, but the jobs report has painted an unclear picture of what to expect. The Bureau of Labor Statistics reported that 142,000 jobs were added in August, lackluster growth that makes a rate cut even more certain — the question is how much. It’s expected that the policymakers will reduce the federal funds rate by 0.25 percentage points, though the size and pace of future cuts are still undetermined. The Federal Open Market Committee will make a decision at its upcoming meeting next week.With mortgage rates changing daily, it’s a good idea to check today’s rate before applying for a loan. It’s also important to compare different lenders’ current interest rates, terms, and fees to ensure you get the best deal.*Median mortgage interest rates are calculated based on rates from over 500 mortgage lenders in all 50 states. The data collected daily by Credible is based on a $400,000 purchase price, $80,000 down payment, single-family primary residence, and a 740+ FICO score.Today’s 30-year fixed-rate mortgage interest rate is 5.990%, 0.010 percentage points lower than yesterday. While mortgage rates can vary, it’s essential to recognize their effect on your monthly payment. For instance, a $350,000 mortgage with a 30-year term at a 6% fixed interest rate would result in a monthly payment of $2,098.43. In comparison, the same mortgage with a 6.75% fixed rate would raise the monthly payment to $2,270.09.Today’s 20-year fixed-rate mortgage interest rate is 5.625%, unchanged from yesterday. Interest rates on mortgages fluctuate, so it’s crucial to understand how they impact your monthly payment. For example, a $350,000 mortgage with a 20-year term at a 5.5% fixed interest rate would result in a monthly payment of $2,407.61. The same mortgage with a 6.25% interest rate would raise the monthly payment to $2,558.25. Today’s 15-year fixed-rate mortgage interest rate is 5.250%, unchanged from yesterday. It’s important to understand how interest rates influence your monthly payment before you take out a home loan. For instance, a $350,000 mortgage with a 15-year term at a 5.25% fixed interest rate would result in a monthly payment of $2,813.57. In contrast, the same mortgage with a 5.75% fixed interest rate would have a monthly payment of $2,906.44. Today’s 10-year fixed-rate mortgage interest rate is 4.875%, 0.115 percentage points lower than yesterday. While mortgage interest rates can vary, it’s important to understand how they can influence your monthly payment. For example, a $350,000 mortgage with a 10-year term at a 5% fixed interest rate would result in a monthly payment of $3,712.29. In comparison, the same mortgage with a 5.75% fixed interest rate would raise the monthly payment to $3,841.92. When you take out a mortgage loan to purchase a home, you’re borrowing money from a lender. The lender will charge interest on the amount you borrowed to compensate for that risk.Expressed as a percentage, a mortgage interest rate is the cost of borrowing money. It can vary based on several factors, such as your credit score, debt-to-income ratio (DTI), down payment, loan amount, and repayment term.When you get a mortgage, you’ll typically receive an amortization schedule, which shows your payment schedule for the life of the loan. It also indicates how much of each payment goes to reduce the principal balance versus the interest.Keep in mind:A mortgage’s interest rate is not the same as its annual percentage rate (APR) — an APR includes both the interest rate and any other lender fees or charges.You’ll spend more money on interest and less on the principal balance at the beginning of your loan term. Over time, as the amount you owe decreases, you’ll pay more toward the principal and less toward interest.Your mortgage interest rate can be either fixed or adjustable. With a fixed-rate mortgage, the rate will be consistent for the duration of the loan. With an adjustable-rate mortgage (ARM), the interest rate can fluctuate with the market.Advertiser DisclosureFox Money ratingMo. PaymentOverviewWith nearly 30 years of experience in the mortgage industry, Allied Mortgage Group offers purchase loans for just about any buyer. The lender offers conventional loans, jumbo loans, VA loans, FHA loans, USDA loans, and several niche mortgage options. For instance, Allied Mortgage Group offers manufactured-home loans and flexible “non-agency” loan options for borrowers with unique financial situations, such as self-employed borrowers. However, the lender only offers mortgages in 37 states — so you’ll have to check whether you can apply.Who it’s best for: Home loans from Allied Mortgage Group are best for borrowers who want a lender with decades of industry experience.Shows ratesOrigination feeAvailabilityCustomer serviceEmail, phoneMobile appOnline review scoreUndisclosedOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewAlly Bank offers conventional and jumbo loans with low down payment requirements. The company is best known for its extensive online offerings, including rate quotes, customer support, and convenient pre-approval in under an hour.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score1.6/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewBank of America has a wide reach, serving customers on its website, mobile app, or in person at one of its many branches. It offers conventional, FHA, VA, and jumbo loans, and borrowers can get pre-approval in as soon as an hour. Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score1.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewBetter.com Mortgage is an online lender that offers conventional mortgages, jumbo loans, VA loans, and FHA loans in all 50 states and Washington, D.C. The lender says you’ll never pay lender fees and offers a competitor price-match program, which can help you save money right out of the gate. While the loan process is completely online, you can get live customer service help any time of the day or night.Borrowers can also get pre-approved in just minutes and close on a loan in three weeks, which is faster than the industry average.Who it’s best for: Home loans from Better.com Mortgage are best for borrowers who want to apply with an online application.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score4.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewChase Bank serves customers nationwide, offering conventional and jumbo loans, as well as FHA and VA loans. The lender also offers help via live chat, email, phone, or in-person at one of its many branches.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score1.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewFarmers Bank of Kansas City provides conventional, FHA, VA, and jumbo mortgage loans. Though its physical branches are in Kansas, it has a user-friendly website with a lot of resources, including online prequalification.Shows ratesOrigination feeAvailabilityCustomer serviceEmail, phoneMobile appOnline review scoreUndisclosedOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewFilo Mortgage offers conventional and government-backed loan options. Though the lender doesn’t offer mortgages in all states, it does tout its low rate guarantee, promising competitive total lender costs for its conventional loans.Shows ratesOrigination feeAvailabilityCustomer serviceEmail, phoneMobile appOnline review scoreUndisclosedOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewFlagstar Bank has home loan service centers in nine states in addition to providing online assistance to customers. It offers conventional, FHA, VA, USDA, and jumbo loans, and some of its mortgage programs allow for a down payment as low as 3.5%.Shows ratesOrigination feeAvailabilityCustomer serviceLive chat, email, phoneMobile appOnline review score1.5/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewGuaranteed Rate provides online and in-person mortgage services in all 50 states. Its online support and digital tools are designed to help borrowers who want to go through the loan process fully online. Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score2.0/5 Trustpilot scoreOnline prequalificationNo; offers pre-approvalMin. down paymentFox Money ratingMo. PaymentOverviewHomefinity offers a wide variety of mortgage products in nearly all 50 states. It has loans available for borrowers who have a credit score as low as 580, you can get a pre-approval in as quickly as an hour. Shows ratesOrigination feeAvailabilityCustomer serviceEmail, phoneMobile appOnline review score3.8/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewMutual of Omaha, based in Nebraska, has been selling insurance since 1909 and started funding home loans in 2016. The lender offers conventional mortgages, jumbo loans, VA loans, FHA loans, and USDA loans in 48 states and Washington, D.C. Borrowers can get help via the mobile app, an online chat feature, and branch locations in 31 states and Puerto Rico.Who it’s best for: Home loans from Mutual of Omaha are best for those who want a mortgage lender with a great reputation.Shows ratesOrigination feeAvailabilityCustomer serviceLive chat, email, phoneMobile appOnline review score4.5/5 Trustpilot scoreOnline prequalificationNo; offers pre-approvalMin. down paymentFox Money ratingMo. PaymentOverviewNBKC Bank is based in Kansas City, Missouri, but lends in all 50 states. The bank offers conventional loans, FHA loans, VA loans, and jumbo loans for up to $1.5 million. When you want to get a rate quote, ask questions, or apply for a home loan, you can get help via phone, email, online chat, and mobile app. There’s even in-person assistance at a few local branches in Kansas and Missouri.Who it’s best for: Home loans from NBKC are best for borrowers who want a guaranteed closing cost estimate.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score4.6/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewNew American Funding began with the goal of serving Spanish-speaking communities and has since branched out to provide mortgages in all 50 states. Its website hosts a variety of options and resources for first-time buyers. It also boasts low credit score and low down payment requirements for some of its mortgages. Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceEmail, phoneMobile appOnline review score4.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewNorthpointe Bank boasts a wide range of loan products for borrowers in all 50 states. It also provides information and support on its user-friendly website, and borrowers can get pre-approved in as little as a day.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score3.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewPNC Bank is a national commercial bank offering a variety of home mortgage products. While the minimum credit score requirements are toward the higher end, the lender also offers some loan programs with a down payment as low as 3% and special loan programs that allow for a down payment of 0%.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceEmail, phoneMobile appOnline review score1.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewPenFed Credit Union is available nationwide, offering a variety of loan options to its members. Assistance is readily available via phone, email, live chat, or app.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score4.3/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewRocket Mortgage offers conventional loans, jumbo loans, FHA loans, and VA loans in all 50 states and Washington, D.C. Most borrowers can complete the mortgage application and close on the loan completely online, but help is available via phone call, live chat, and mobile app.Rocket is both a mortgage originator and servicer — so when you take out a home loan, you know which company will collect your monthly payments and answer your questions for the life of the loan. The lender routinely takes the No. 1 spot in customer-satisfaction surveys, for originating and servicing mortgages.Who it’s best for: Home loans from Rocket Mortgage are best for borrowers with low or bad credit.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceLive chat, email, phoneMobile appOnline review score4.7/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Money ratingMo. PaymentOverviewVeterans United specializes in mortgage purchase and mortgage refinancing loans for military service members and veterans.Shows ratesOrigination feeAvailabilityAll 50 statesCustomer serviceEmail, phoneMobile appOnline review score4.9/5 Trustpilot scoreOnline prequalificationMin. down paymentFox Business does not make or arrange loans.Mortgage rates change frequently – sometimes on a daily basis – in response to economic factors. Inflation plays a significant role in these fluctuations. Interest rates tend to rise in periods of high inflation, and drop or remain roughly the same in times of low inflation. Other factors, like the economic climate, demand, and inventory can also impact the current average mortgage rates.Mortgage lenders typically determine the interest rate on a case-by-case basis. Generally, they reserve the lowest rates for low-risk borrowers – that is, those with a higher credit score, income, and down payment amount. Here are some other personal factors that may determine your mortgage rate:Location of the homePrice of the homeYour credit score and credit historyLoan termLoan type (e.g., conventional or FHA)Interest rate type (fixed or adjustable)Down payment amountLoan-to-value (LTV) ratioDTIOther indirect factors that may determine the mortgage rate include:Current economic conditionsRate of inflationMarket conditionsHousing construction supply, demand, and costsConsumer spendingStock market10-year Treasury yieldsFederal Reserve policiesCurrent employment rateThe lender you choose can also affect your mortgage rate. Some lenders have higher average mortgage rates than others, regardless of your credit or financial situation. That’s why it’s important to compare lenders and loan offers.Here are some of the best ways to compare mortgage rates and ensure you get the best one:Shop around for lenders: Compare several lenders to find the best rates and lowest fees. Even if the rate is only lower by a few basis points, it could still save you thousands of dollars over the life of the loan.Get several loan estimates: A loan estimate comes with a more personalized rate and fees based on factors like income, employment, and the property’s location. Request and compare loan estimates from several lenders.Get pre-approved for a mortgage: Pre-approval doesn’t guarantee you’ll get a loan, but it can give you a better idea of what you qualify for and at what interest rate. You’ll need to complete an application, submit financial documents, and undergo a hard credit check.Consider a mortgage rate lock: A mortgage rate lock lets you lock in the interest rate a lender offers you for a certain amount of time – usually 30, 45, or 60 days but sometimes more. During this time, you can continue shopping around for a home without worrying about the rate changing.Choose between an adjustable- and fixed-rate mortgage: The interest rate type can affect how much you pay over time, so consider your options carefully.Tip:Use a mortgage calculator to see how different interest rates impact your monthly payment amount and the total cost of the loan. Just remember, certain fees like homeowners insurance or taxes might not be included in the calculations.Here’s a simple example of what a 15-year fixed-rate mortgage might look like versus a 30-year fixed-rate mortgage:Loan amount: $300,000Interest rate: 6.29%Monthly payment: $2,579Total interest charges: $164,186Total loan amount: $464,186Loan amount: $300,000Interest rate: 6.89%Monthly payment: $1,974Total interest charges: $410,566Total loan amount: $710,565Pros and cons of mortgagesIf you’re thinking about taking out a mortgage, here are some benefits to considerPros and ConsProsPredictable monthly payments: Fixed-rate mortgage loans come with a set interest rate that doesn’t change over the life of the loan. This means more consistent monthly payments.Potentially low interest rates: With good credit and a high down payment, you could get a competitive interest rate. Adjustable-rate mortgages may also come with a lower initial interest rate than fixed-rate loans.Tax benefits: Having a mortgage could make you eligible for certain tax benefits, such as a mortgage interest deduction.Potential asset: Real estate is often considered an asset. As you pay down your loan, you can also build home equity, which you can use for other goals like debt consolidation or home improvement projects.Credit score boost: As you continue to make on-time payments, you can build your credit score.ConsExpensive fees and interest: You could end up paying thousands of dollars in interest and other fees over the life of the loan. You will also be responsible for maintenance, property taxes, and homeowners insurance.Long-term debt: Taking out a mortgage is a major financial commitment. Typical loan terms are 10, 15, 20, and 30 years.Potential rate changes: If you get an adjustable rate, the interest rate could increase.Requirements vary by lender, but here are the typical steps to qualify for a mortgage:Have steady employment and income: You’ll need to provide proof of income when you apply for a home loan. This may include money from your regular job, alimony, military benefits, commissions, or Social Security payments. You may also need to provide proof of at least two years’ worth of employment at your current company.Review any assets: Lenders consider your assets when deciding whether to lend you money. Common assets include money in your bank account or investment accounts.Know your DTI: Your DTI is the percentage of your gross monthly income that goes toward your monthly debts – like installment loans, lines of credit, or rent. The lower your DTI, the better your approval odds.Check your credit score: To get the best mortgage rate possible, you’ll need to have good credit. However, each loan type has a different credit score requirement. For example, you’ll need a credit score of 580 or higher to qualify for an FHA loan with a 3.5% down payment. Check your credit score to see what you qualify for.Know the property type: During the loan application process, you may need to specify whether the home you want to buy is your primary residence. Lenders often view a primary residence as less risky, so they may have more lenient requirements than if you were to get a secondary or investment property.Choose the loan type: Many types of mortgage loans exist, including conventional loans, VA loans, USDA loans, FHA loans, and jumbo loans. Consider your options and pick the best one for your needs.Prepare for upfront and closing costs: Depending on the loan type, you may need to make a down payment. The exact amount depends on the loan type and lender. A USDA loan, for example, has no minimum down payment requirement for eligible buyers. With a conventional loan, you’ll need to put down 20% to avoid private mortgage insurance (PMI). You may also be responsible for paying any closing costs when signing for the loan.Here are the basic steps to apply for a mortgage, and what you can typically expect during the process:Choose a lender: Compare several lenders to see the types of loans they offer, their average mortgage rates, repayment terms, and fees. Also, check if they offer any down payment assistance programs or closing cost credits.Get pre-approved: Apply for pre-approval to boost your chances of getting your dream home. You’ll need identifying documents, as well as paperwork verifying your employment, income, assets, and debts.Submit a formal application: Complete your chosen lender’s application process – either in person or online – and upload any required documents.Wait for the lender to process your loan: It can take some time for the lender to review your application and make a decision. In some cases, it may request additional information about your finances, assets, or liabilities. Provide this information as soon as possible to prevent delays.Complete the closing process: If approved for a loan, you’ll receive a closing disclosure with information about the loan and any closing costs. Review it, pay the down payment and closing costs, and sign the final loan documents. Some lenders have an online closing process, while others require you to go in person. If you are not approved, you can talk to your lender to get more information and determine how you can remedy any issues.Refinancing your mortgage lets you replace your current loan with a new one. It does not mean taking out a second loan.You might want to refinance your mortgage if you:Want a lower interest rate or different rate typeAre looking for a shorter repayment term so you can pay off the loan soonerNeed a smaller monthly paymentWant to remove the PMI from your loanNeed to use the equity for home improvement projects or debt consolidation (cash-out refinancing)The refinancing process is similar to getting the original loan. Here are the basic steps:Choose the type of refinancing you want.Compare lenders for the best rates.Complete the application process.Wait for the lender to review your application.Provide supporting documentation (if requested).Complete the home appraisal.Proceed to closing, review the loan documents, and pay any closing costs.If you need to tap into your home’s equity to pay off debt, fund a renovation, or cover an emergency expense, there are two popular options to choose from: a home equity loan and a home equity line of credit (HELOC). Both a home equity loan and a HELOC allow you to borrow against your home’s equity but a home equity loan comes in the form of a lump sum payment and a HELOC is a revolving line of credit.These two loan types have some other key similarities and differences in how they work:Home equity loanHome equity line of credit (HELOC) Interest rateFixedVariableMonthly payment amountFixedVariableClosing costs and feesYesYes, might be lower than other loan typesRepayment periodTypically 5-30 yearsTypically 10-20 yearsInterest rates on mortgages fluctuate all the time, but a rate lock allows you to lock in the rate a lender offers you for a set amount of time. This ensures you get the rate you want as you complete the homebuying process.Mortgage points are a type of prepaid interest that you can pay upfront – often as part of your closing costs – for a lower overall interest rate. This can lower your APR and monthly payments.Closing costs are the fees you, as the buyer, need to pay before getting a loan. Common fees include attorney fees, home appraisal fees, origination fees, and application fees.Meet the contributor: Angela MaeAngela Mae is a Credible authority on personal finance. Her work has been featured by Credit Karma, Lendstart, and GoodRx.
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