Weekly summary of mortgage news for August 14, 2020
A lot has happened with mortgage rates and buying a home this week. Check out these best stories from The Ascent.
With interest rates so low, many homeowners are crying out for mortgage refinancing. But be careful, because a refi could soon be much more expensive thanks to a new “unfavorable market refinancing fee”.
On August 6, mortgage rates were on average 2.88% for a 30-year fixed mortgage and 2.44% for a 15-year fixed loan. Not everyone will qualify for such a low rate, but the higher your credit, the more likely you are to get the best deals.
Mortgage rates have come down dramatically, but consumers agree now is not the best time to buy a new home. Which give? We can attribute this to the limited stock of housing, rising house prices and general economic uncertainty.
A 30-year mortgage at less than 2%? Is it too good to be true? In fact, sort of. The 30-year mortgage tends to get closer to 3% this week, and while it’s possible to get a lower rate, you’ll usually pay a lot more up front in the form of points and closing costs.
Home prices rose 8.5% from last year, and the reason for this is lack of inventory. As such, many buyers see their prices go up despite the fact that financing a home is cheaper than ever.
Refinancing gives you a great opportunity to lower your monthly mortgage payments and save money on interest for the life of your loan. But don’t rush to refinance just because the rates are low. If you don’t plan on staying in your home for very long, you could end up losing money on refinancing.
Whether you’re looking to buy a home, refinance a mortgage, or learn more about what it takes to get a home loan, keep checking out The Ascent Mortgage Coverage to stay on top of everything. buying a house.