mortgage

How to shop for a mortgage (and get your best deal)

With a typical price tag today of around $350,000, a home is the biggest purchase most people ever make. And the price is just the beginning.

record-low mortgage rates. There’s not only interest to consider, but also lender fees, mortgage insurance and other borrowing costs.” data-reactid=”33″Most buyers need a mortgage to take ownership of a home, and a loan can be expensive — even in this time of record-low mortgage rates. There’s not only interest to consider, but also lender fees, mortgage insurance and other borrowing costs.

Do yourself a favor by shopping around, knowing your options, and more.

Follow these tips to save tens of thousands of dollars over the life of a mortgage loan.

1. Sharpen your credit score

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Though market forces drive mortgage rates up or down, lenders also consider your own finances when setting your

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How to get the cheapest 30-year mortgage rate for your refinance

Refinancing your home to take advantage of today’s lowest-ever mortgage rates has become a popular pandemic activity, right up there with Zoom reunions, home baking and making TikTok videos.

Close to 1.7 million U.S. homeowners refinanced over April, May and June of this year — more than double the number who took out new loans during the same period in 2019, according to Attom Data Solutions.

refinance and save. At current rates for 30-year mortgages, an estimated 15.6 Americans could refi and lower their interest rates enough to slash their monthly payments by an average $289, says mortgage data firm Black Knight.” data-reactid=”34″The economic chaos unleashed by the coronavirus has sent mortgage rates plunging, giving homeowners a major incentive to refinance and save. At current rates for 30-year mortgages, an estimated 15.6 Americans could refi and lower their interest rates enough to slash their monthly payments by an

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Mortgage rates spike in response to new fee, but deals are still around

Mortgage rates have taken off ever since lenders found out Wednesday night that they’ll be charged a new fee on most refinance loans.

Average rates on 30-year fixed-rate mortgages have skyrocketed and are above 3% for the first time in months, according to Mortgage News Daily.

“Mortgage lenders don’t like surprises, and they don’t like suddenly being forced to pay hundreds of millions of dollars they hadn’t budgeted for,” says Matthew Graham, MND’s chief operating officer. “When that happens, they are going to raise rates to offset the newfound losses. And that’s exactly what they did.”

But one of the nation’s largest mortgage lenders is offering a 30-year loan with rates as low as 1.999%, so deals are still out there. You just need to know how to find them.

What’s happened to mortgage rates?

Andrii Yalanskyi / Shutterstock

It was just last week that 30-year mortgage rates dropped

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How homeowners can beat the new mortgage refinancing fee

As rates on home loans have slumped to all-time lows this year, hordes of homeowners have cut their monthly mortgage payments by refinancing. But that process is about to get more expensive.

The two huge government-sponsored mortgage companies that buy or back most U.S. home loans say they’ll need to start charging an “adverse market refinance fee” equal to 0.5% of the loan amount, beginning Sept. 1.

Mortgage lenders are livid and say the charge will cost the average borrower an extra $1,400. That’s enough to make some people think twice about whether a refi is worth it.

But don’t rule out getting a new loan, because you might easily trim some other costs to offset the fee.

Mortgage giants blame the fee on COVID-19 ‘uncertainty’

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The coronavirus pandemic is being cited as the reason for the new fee.

The fee is due to

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Lender announces 30-year home loan under 2%, even as mortgage rates rise

Though mortgage rates have generally been moving higher this week, one of America’s largest home lenders keeps moving things far in the other direction.

United Wholesale Mortgage — the company that recently announced a 15-year fixed-rate mortgage with rates as low as 1.875% — has just unveiled a 30-year fixed-rate loan that starts at just 1.999%.

UWM’s new deal offers potentially huge savings for borrowers.

“Roughly speaking, this means a consumer with a $300,000 home who puts down 10% and refinances from a 3.14% to 1.999% interest rate can save nearly $128,785.56 over the life of the loan,” UWM said, in an email.

But can anybody get a 1.999% mortgage? Is there a catch?

Rates far below the average

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The rate on UWM’s loan is way below this week’s average rate for a 30-year fixed-rate mortgage: 2.96%, according to mortgage company Freddie Mac. Though rates are

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A Good Time For Mortgage Companies

Rocket Companies Inc. (NYSE:RKT), a mortgage company run by billionaire Dan Gilbert and best known for its subsidiary Quicken Loans, has released terms for its upcoming IPO. The company will sell 150 million shares with the possibility of selling an additional 22.5 million more at a maximum price of $22, and will thus raise up to nearly $3.8 billion. This company could be worth $40 billion after this IPO, making it the largest of 2020.

Bigger certainly does not mean better when it comes to IPO, as a quick glance at Uber (NYSE:UBER) can tell you. But Rocket Companies Inc. is in a good position to take advantage of trends caused by the coronavirus and has solid financial numbers to boot. But the big question is whether the positives can justify such a large valuation.

Q2 2020 hedge fund letters, conferences and more

Mortgages And COVID-19

Most businesses have been

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How to get the cheapest 15-year mortgage rate for your refinance

Refinancing remains at the top of many homeowners’ to-do lists as mortgage rates keep crashing to new all-time lows.

If you’re thinking of taking out a fresh loan with a lower, money-saving rate, your mind might automatically be going to a 30-year fixed-rate mortgage. It’s America’s most popular type of home loan, and maybe it’s what you already have.

But if you’ve been in your house a few years, refinancing into a 15-year mortgage can keep you from dragging out the debt and your interest costs. Though the monthly payments can be steeper, the loans come with lower interest rates — currently as low as 1.875%.

Here are four tips on how to get the very best deal when refinancing into a 15-year mortgage.

1. Compare loans

Most mortgage lenders offer both 30- and 15-year terms. Compare the current average rates between the two loan products, then zero in on

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How the Fed could push mortgage rates even lower this week

Both homebuyers and homeowners are loving today’s record-breaking mortgage rates, which have been averaging less than 3% for the very first time. As rates have made history this month, mortgage applications have been rising.

Borrowers owe the Federal Reserve a big thank you for the plunging rates on new and refinance home loans, and Fed policymakers who meet this week could help push them even lower.

America’s central bank is expected to stick with and even sharpen its coronavirus-fighting policies that have driven interest rates down. Fed officials also are likely to spread more gloom about the economy — and when Fed chief Jerome Powell and his colleagues get grim, mortgage rates tend to drop.

What the Fed is likely to do

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Let’s get this out of the way first thing: No one’s expecting the Fed’s policy panel to make any changes in interest

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4 tips for bagging one of those mortgage rates under 3%

You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.

The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.

But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.

In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.

In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y

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This is how you get one of those mortgage rates under 3%

You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.

The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.

But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.

In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.

In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y

Read More