What are Today’s Mortgage Refinance Rates?
Refinancing your mortgage is a decision many homeowners make, and for a myriad of reasons.
The year is definitely looking up for those considering taking advantage of their home’s equity. As we’ve discussed before, the advantages of refinancing in this market may differ among borrowers. A cash-out loan can impact credit card balances and student debt, or simply create a rainy-day plan for the future. Homeowners considering a remodel or other home improvement projects might find this a great time to refinance for the necessary funds, through either conventional or FHA. Or a new mortgage rate could greatly reduce an existing one, thus making a monthly payment more manageable.
National averages of the lowest rates offered by more than 200 of the country’s top lenders, with a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700-760, and no mortgage points.
How Mortgage Refinance Rates are Determined
First, it’s important to know that interest rates are influenced and determined by multiple factors that include inflation, Federal Reserve decisions, economic growth markers, the housing market, as well as the bond market. Rates tend to follow the trajectory of the 10-year Treasury note. Then, lenders – from big banks to smaller, alternative firms – typically offer clients the most competitive rates they can.
Borrowers can improve their chances of achieving the best mortgage rate with strong credit scores, documented income, and a low debt-to-income ratio. Those seeking to refinance will have their loan-to-value ratio (LTV) taken into consideration as well.
What are the Best Refinance Rates Today?
That is the magic question with the ever-changing answer. In November, the Federal Reserve cut short-term interest rates for the third time in 2019 and current international tensions have impacted the numbers even further. A cursory search will show an average fixed-rate, 30-year mortgage at 3.64%* and the popular 15-year refinance option averaging 3.07%*.
However, as we explained before, these rates will vary depending on your credit situation, refinancing goals, and of course, the lender. It’s a good idea to explore your options and we at Titan Mutual Lending Inc. hope you include us if you’re thinking of taking advantage of current refinance mortgage rates.
Not only do we provide a full book of mortgage and refinance services, we offer years of experience and knowledge that benefits each and every one of our clients. With Freddie Mac predicting continued low mortgage rates throughout 2020, it’s a great time to give Titan Mutual Lending Inc. a call today to discuss your needs and current rates.
*These numbers are for 1/17/2020 and varied depending on the source; they will probably be different the day of publication.