Mortgage Rates Mixed for Week of June 22
Rates for a 30 year FRM increased from 5.38 % to 5.42%, while rates for a 15 yr FRM declined from 4.89% to 4.87%. Rates for a 5/1 ARM rose from 4.97% to 4.99%. The Wall Street Journal notes that payment of approximately .70 of a point is typically required to obtain the best rates. A point is 1% of a mortgage amount. Don't be discouraged by weekly rate fluctuations; last year, rates for a 30 year FRM were 6.45%. If you want a new home loan or refinance, here are some tips that can help you save:
- Get pre approved for a mortgage before you shop for a home: This enables you to focus on homes within your price range, and can be a bargaining incentive with sellers who won't have to wait for your mortgage approval as a condition of completing the sale of their home.
- Establish affordability before shopping for a home loan: Determine how much you can afford to borrow. Lenders typically require that income to expense ratios don't exceed 28% of your monthly gross income for monthly housing expenses (principle, interest, taxes & insurance) and 36% of your monthly gross income for housing expenses and other debts.
Mortgage Rates and Your Credit
When shopping for a refinance or new home loan, it's important to remember that the rates posted each week represent the lowest available mortgage rates. Your credit scores, income, and debt levels are factors used in determining your mortgage rate. Order credit reports and scores before shopping for a home loan. Knowing in advance what mortgage lenders will see when they pull your credit reports can help you increase your credit scores by removing errors from your credit reports, reducing debt. or preparing explanations for unavoidable circumstances such as illness or unemployment that may have lowered your credit scores. Taking steps to resolve credit issues and presenting a picture of financial responsibility can help you get mortgage approval at the best rates.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
