Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Last year, it seemed like rates would never stop climbing, with 30-year mortgage rates reaching a more than two-decade high in October 2023. Now rates are much lower, but they’re still relatively high compared to pre-pandemic levels.
The good news is that mortgage rates should go down in 2024, with some forecasts predicting they’ll drop close to 6% by the end of the year. The not-so-good news is that as rates go down, houses are probably going to get more expensive.
The latest housing market predictions for 2024 see home prices rising this year as lower mortgage rates drive an increase in homebuying demand. High mortgage rates have kept a lot of would-be buyers out of the market over the past couple of years. Once rates fall, all that pent-up demand is going to be unleashed on a market that doesn’t have anywhere near enough inventory to meet it.
This will push home prices up. But that doesn’t necessarily mean it will be impossible to buy in 2024, or that prices will spike dramatically everywhere. There will still be opportunities for many buyers to carve out some affordability in this market.
For cash-strapped first-timers who are hoping to buy in 2024, things like down payment assistance and first-time homebuyer loans can make homeownership more affordable, even as prices rise.
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Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
30-year Fixed Mortgage Rates
The average 30-year fixed mortgage rate was 6.66% last week, according to Freddie Mac. This is a four-basis-point increase from the previous week.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-year Fixed Mortgage Rates
Last week, average 15-year mortgage rates were 5.87%, a two-basis-point decrease from the previous week, according to Freddie Mac data.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
When Will Mortgage Rates Go Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Rates also increased dramatically last year, though they’ve been trending back down in recent months.
As inflation comes down, mortgage rates will recede as well. Most major forecasts expect rates to trend down throughout 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
How Do Fed Rate Hikes Affect Mortgages?
The Federal Reserve increased the federal funds rate a lot last year to try to slow economic growth and get inflation under control. Inflation has come down a lot in response to this, though it’s still a little bit above the Fed’s target rate of 2%.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
Fed hikes have pushed mortgage rates up over the last two years. But the Fed has indicated that it’s likely done hiking rates and could start cutting in 2024. Once the Fed cuts rates, mortgage rates should fall even further.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Despite the latest Consumer Price Index data coming in a bit hot according to Thursday’s report, mortgage rates have been holding steady this week. Average 30-year mortgage rates remained in a tight 6.3%-to-6.45% range, only up a little bit from the previous week.
The hotter-than-expected CPI numbers, which showed that inflation rose 3.4% year over year in December, led many to wonder if this would cause the Federal Reserve to push back its timeline for rate cuts in 2024.
But investors are currently pricing in an almost 80% likelihood that the Fed will make its first cut to the federal funds rate at its meeting in March, up from 64% a week ago, according to the CME FedWatch Tool. If that happens, we could see mortgage rates inch down further.
But Fed officials may also decide that they want to wait a bit longer before making any moves, in which case mortgage rates may generally stay near their current levels for at least the next few months. We’ll likely get a better idea of when to expect rate cuts at the Fed’s next meeting at the end of January.
Most experts believe mortgage rates will go down in 2024, but the timing will depend a lot on the path of inflation and when the Fed starts lowering the federal funds rate.
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.
Mortgage Rate Projection for 2024
Mortgage rates increased dramatically for most of 2023, though they started trending back down in the final months of the year. As the economy continues to normalize in 2024, rates should come down even further.
In the last 12 months, the Consumer Price Index rose by 3.4%, a significant slowdown compared to when it peaked at 9.1% in 2022. This is good news for mortgage rates — as inflation slows and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates are expected to trend down as well.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of the best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
When Will House Prices Come Down?
We aren’t likely to see home prices drop anytime soon thanks to extremely limited supply. In fact, they’ll likely rise this year.
Fannie Mae researchers expect prices to increase 6.7% in 2023 and 2.8% in 2024, while the Mortgage Bankers Association expects a 5.7% increase in 2023 and a 4.1% increase in 2024.
Sky high mortgage rates pushed many hopeful buyers out of the market last year, slowing homebuying demand and keeping price growth somewhat moderate. But rates are expected to drop this year, which will likely push home prices even higher. The current supply of homes is also historically low, which only exacerbates the problem.
Fixed-Rate vs. Adjustable-Rate Mortgage Pros and Cons
Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.
So how do you choose between a fixed-rate vs. adjustable-rate mortgage?
ARMs typically start with lower rates than fixed-rate mortgages, but ARM rates can go up once your initial introductory period is over. If you plan on moving or refinancing before the rate adjusts, an ARM could be a good deal. But keep in mind that a change in circumstances could prevent you from doing these things, so it’s a good idea to think about whether your budget could handle a higher monthly payment.
Fixed-rate mortgage are a good choice for borrowers who want stability, since your monthly principal and interest payments won’t change throughout the life of the loan (though your mortgage payment could increase if your taxes or insurance go up).
But in exchange for this stability, you’ll take on a higher rate. This might seem like a bad deal right now, but if rates increase further down the road, you might be glad to have a rate locked in. And if rates trend down, you may be able to refinance to snag a lower rate
How Does an Adjustable-Rate Mortgage Work?
Adjustable-rate mortgages start with an introductory period where your rate will remain fixed for a certain period of time. Once that period is up, it will begin to adjust periodically — typically once per year or once every six months.
How much your rate will change depends on the index that the ARM uses and the margin set by the lender. Lenders choose the index that their ARMs use, and this rate can trend up or down depending on current market conditions.
The margin is the amount of interest a lender charges on top of the index. You should shop around with multiple lenders to see which one offers the lowest margin.
ARMs also come with limits on how much they can change and how high they can go. For example, an ARM might be limited to a 2% increase or decrease every time it adjusts, with a maximum rate of 8%.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates are set to go down in 2024, but when and how much largely depends on inflation and when the Federal Reserve starts cutting the federal funds rate.
Last week, 30-year mortgage rates averaged 6.26%, though they inched up a big higher toward the end of the week. Many experts believe we could see rates end up near 6% or lower by the end of the year.
But hotter-than-expected economic data could shift that timeline. On Thursday, we’ll see the Consumer Price Index data for December. Inflation has slowed significantly since it peaked in 2022, but it’s still a bit above the Fed’s target rate.
The Fed has indicated it may be ready to cut rates this year, and markets have priced in a possible 25-point cut at the Fed’s meeting in March, according to the CME FedWatch Tool. But stubborn inflation could mean we’ll have to wait until later in the year for the Fed to cut rates, which would likely mean a longer wait for lower mortgage rates as well.
Mortgage Rates Today
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.
30-Year Fixed Mortgage Rates
The average 30-year fixed mortgage rate was 6.62% last week, according to Freddie Mac. This is a single basis point increase from the week before.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-Year Fixed Mortgage Rates
Average 15-year mortgage rates were 5.89% last week, according to Freddie Mac data, which is a four-basis-point drop from the previous week.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
Are Mortgage Rates Going Up?
Mortgage rates increased throughout most of 2023. But mortgage rates are expected to trend down in the coming months and years.
In the last 12 months, the Consumer Price Index rose by 3.1%. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
How Do Fed Rate Hikes Affect Mortgages?
The Fed aggressively raised the federal funds rate in 2022 and 2023 to slow economic growth and get inflation under control. As a result, mortgage rates spiked.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.
Home renovations can be expensive. But the good news is that you don’t have to pay out of pocket.
Home improvement loans let you finance the cost of upgrades and repairs to your home.
Some — like the FHA 203(k) mortgage — are specialized for home renovation projects, while second mortgage options — like home equity loans and HELOCs — can provide cash for a remodel or any other purpose. Your best financing option for home improvements depends on your needs. Here’s what you should know.
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What is a home improvement loan?
A home improvement loan is a financial tool that allows you to borrow money for various home projects, such as repairs, renovations, or upgrades.
Unlike a secured loan like a second mortgage, home improvement loans are often unsecured personal loans, meaning you don’t have to put up your home as collateral. You get the money in a lump sum and pay it back over a predetermined period, which can range from one to seven years.
Now, you might be wondering how this is different from a home renovation loan. While the terms are often used interchangeably, there can be subtle differences.
Home improvement loans are generally more flexible and can be used for any type of home project, from installing a new roof to landscaping. Home renovation loans, on the other hand, are often more specific and may require you to use the funds for particular types of renovations, like kitchen or bathroom remodels.
How does a home improvement loan work?
So, you’ve decided to spruce up your home, and you’re considering a home improvement loan. But how does it work? Once you’re approved, the lender will give you the money in a lump sum. You start repaying the loan almost immediately, usually in fixed monthly installments. The interest rate you’ll pay depends on various factors, including your credit score and the lender’s terms.
Be mindful of additional costs like origination fees, which can range from 1% to 8% of the loan amount. Unlike a credit card, where you can keep using the available credit as you pay it off, the loan amount is fixed. If you find that you need more money for your project, you’ll have to apply for another loan, which could affect your credit score.
Home improvement loan rates
Interest rates for home improvement loans can vary widely, generally ranging from 5% to 36%. Your credit score plays a significant role in determining your rate—the better your credit, the more favorable your rate. Some lenders even offer an autopay discount if you link a bank account for automatic payments.
You can also prequalify to check your likely interest rate without affecting your credit score, making it easier to plan for the loan purpose, whether it’s a new kitchen or fixing a leaky roof.
So, whether you’re dreaming of solar panels or finally fixing up your master bedroom, a home improvement loan can be a practical way to finance your projects. Just make sure to read the fine print and understand all the terms, including any potential autopay discounts and bank account requirements, before you apply.
Types of home improvement loans
1. Home equity loan
A home equity loan (HEL) is a financial instrument that lets you borrow money using the equity you’ve built up in your home as collateral. The equity is determined by subtracting your existing mortgage loan balance from your current home value. Unlike a cash-out refinance, a home equity loan “issues loan funding as a single payment upfront. It’s similar to a second mortgage,” says Bruce Ailion, Realtor and real estate attorney. “You would continue making payments on your original mortgage while repaying the home equity loan.”
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This kind of loan is particularly useful for big, one-time expenditures like home remodeling. It offers a fixed interest rate, and the loan terms can range from five to 30 years. You could potentially borrow up to 100% of your home’s equity.
However, there are some cons to consider. Since you’re essentially taking on a second loan, you’ll have an additional monthly payment if you still have a balance on your original mortgage. Also, the lender will usually charge closing costs ranging from 2% to 5% of the loan balance, as well as potential origination fees. Because the loan provides a lump-sum payment, careful budgeting is necessary to ensure the funds are used effectively.
As a bonus, “a home equity loan, or HELOC, may also be tax-deductible,” says Doug Leever with Tropical Financial Credit Union, member FDIC. “Check with your CPA or tax advisor to be sure.”
2. HELOC (home equity line of credit)
A Home Equity Line of Credit (HELOC) is another option for tapping into your home’s equity without going through the process of a full refinance. Unlike a standard home equity loan that provides a lump sum upfront, a HELOC functions more like a credit card. You’re given a pre-approved limit and can borrow against that limit as you need, paying interest only on the amount you’ve actually borrowed.
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While there’s more flexibility because you don’t have to borrow the entire amount at once, be aware that by the end of the term, “the loan must be paid in full. Or the HELOC can convert to an amortizing loan,” says Ailion. “Note that the lender can be permitted to change the terms over the loan’s life. This can reduce the amount you can borrow if, for instance, your credit goes down.”
The pros of a HELOC include minimal or potentially no closing costs, and loan payments that vary according to how much you’ve borrowed. It offers a revolving balance, which means you can re-use the funds after repayment. This kind of financial instrument may be ideal for ongoing or long-term projects that don’t require a large sum upfront.
“HELOCs offer flexibility, and you only pull money out when needed, within the maximum loan amount. And the credit line is available for up to 10 years, which is your repayment period.” Leever says.
3. Cash-out refinance
A cash-out refinance is a viable option if you’re considering home improvements or other significant financial needs. When opting for a cash-out refinance, you essentially take on a new, larger mortgage than your existing one and then pocket the difference in cash.
This cash comes from your home’s value and can be used for various purposes, including home improvement projects like finishing a basement or remodeling a kitchen. However, the money can also be used for other things, like paying off high-interest debt, covering education expenses, or even buying a second home. Importantly, a cash-out refinance is most beneficial when current market rates are lower than your existing mortgage rate.
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The advantages of going for a cash-out refinance include the opportunity to reduce your mortgage rate or loan term, which could potentially result in paying off your home earlier. For instance, if you initially had a 30-year mortgage with 20 years remaining, you could refinance to a 15-year loan, effectively paying off your home five years ahead of schedule. Plus, you only have to worry about one mortgage payment.
However, there are downsides. Cash-out refinances tend to have higher closing costs that apply to the entire loan amount, not just the cash you’re taking out. The new loan will also have a larger balance than your current mortgage, and refinancing effectively restarts your loan term length.
4. FHA 203(k) rehab loan
The FHA 203(k) rehab loan is backed by the Federal Housing Administration that consolidates the cost of a home mortgage and home improvements into a single loan, which makes it particularly useful for those buying fixer-uppers.
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With this program, you don’t need to apply for two different loans or pay closing costs twice; you finance both the house purchase and the necessary renovations at the same time. The loan comes with several benefits like a low down payment requirement of just 3.5% and a minimum credit score requirement of 620, making it accessible even if you don’t have perfect credit. Additionally, first-time home buyer status is not a requirement for this loan.
However, there are some limitations and downsides to be aware of. The FHA 203(k) loan is specifically designed for older homes in need of repairs, rather than new properties. The loan also includes both upfront and ongoing monthly mortgage insurance premiums. Renovation costs have to be at least $5,000, and the loan restricts the use of funds to certain approved home improvement projects.
According to Jon Meyer, a loan expert at The Mortgage Reports, “FHA 203(k) loans can be drawn out and difficult to get approved. If you go this route, it’s important to choose a lender and loan officer familiar with the 203(k) process.”
5. Unsecured personal loan
If you’re looking to finance home improvements but don’t have sufficient home equity, a personal loan could be a viable option. Unlike home equity lines of credit (HELOCs), personal loans are unsecured, meaning your home is not used as collateral. This feature often allows for a speedy approval process, sometimes getting you funds on the next business day or even the same day.
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The repayment terms for personal loans are less flexible, usually ranging between two and five years. Although you’ll most likely face closing costs, personal loans can be easier to access for those who don’t have much home equity to borrow against. They can also be a good choice for emergency repairs, such as a broken water heater or HVAC system that needs immediate replacement.
However, there are notable downsides to consider. Unsecured personal loans generally have higher interest rates compared to HELOCs and lower borrowing limits. The short repayment terms could put financial strain on your budget. Additionally, you may encounter prepayment penalties and expensive late fees. Financial expert Meyer describes personal loans as the “least advisable” option for homeowners, suggesting that they should be considered carefully and perhaps as a last resort.
6. Credit cards
Using a credit card can be the fastest and most straightforward way to finance your home improvement projects, eliminating the need for a lengthy loan application. However, you’ll need to be cautious about credit limits, especially if your renovation costs are high.
You might need a card with a higher limit or even multiple cards to cover the costs. The interest rates are generally higher compared to home improvement loans, but some cards offer an introductory 0% annual percentage rate (APR) for up to 18 months, which can be a good deal if you’re sure you can repay the balance within that time frame.
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Credit cards might make sense in emergency situations where you need immediate funding. For longer-term financing, though, they’re not recommended. If you do opt for credit card financing initially, you can still get a secured loan later on to clear the credit card debt, thus potentially saving on high-interest payments.
How do you choose the best home improvement loan for you?
The best home improvement loan will match your specific lifestyle needs and unique financial situation. So let’s narrow down your options with a few questions.
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Do you have home equity available?
If so, you can access the lowest rates by borrowing against the equity in your home with a cash-out refinance, a home equity loan, or a home equity line of credit.
Here are a few tips for choosing between a HELOC, home equity loan, or cash-out refi:
Can you get a lower interest rate? If so, a cash-out refinance could save money on your current mortgage and your home improvement loan simultaneously
Are you doing a big, single project like a home remodel? Consider a simple home equity loan to tap into your equity at a fixed rate
Do you have a series of remodeling projects coming up? When you plan to remodel your home room by room or project by project, a home equity line of credit (HELOC) is convenient and worth the higher loan rate compared to a simple home equity loan
Are you buying a fixer-upper?
If so, check out the FHA 203(k) program. This is the only loan on our list that bundles home improvement costs with your home purchase loan. Just review the guidelines with your loan officer to ensure you understand the disbursement of funds rules.
Taking out just one mortgage to cover both needs will save you money on closing costs and is ultimately a more straightforward process.
“The only time I’d recommend the FHA203(k) program is when buying a fixer-upper,” says Meyer. “But I would still advise homeowners to explore other loan options as well.”
Do you need funds immediately?
When you need an emergency home repair and don’t have time for a loan application, you may have to consider a personal loan or even a credit card.
Which is better?
Can you get a credit card with an introductory 0% APR? If your credit history is strong enough to qualify you for this type of card, you can use it to finance emergency repairs. But keep in mind that if you’re applying for a new credit card, it can take up to 10 business days to arrive in the mail. Later, before the 0% APR promotion expires, you can get a home equity loan or a personal loan to avoid paying the card’s variable-rate APR
Would you prefer an installment loan with a fixed rate? If so, apply for a personal loan, especially if you have excellent credit
Just remember that these options have significantly higher rates than secured loans. So you’ll want to reign in the amount you’re borrowing as much as possible and stay on top of your payments.
How to get a home improvement loan
Getting a home improvement loan is similar to getting a mortgage. You’ll want to compare rates and monthly payments, prepare your financial documentation, and then apply for the loan.
Check home improvement loan options and rates. Start here
1. Check your financial situation
Check your credit score and debt-to-income ratio. Lenders use your credit report to establish your creditworthiness. Generally speaking, lower rates go to those with higher credit scores. You’ll also want to understand your debt-to-income ratio (DTI). It tells lenders how much money you can comfortably borrow.
2. Compare lenders and loan types
Gather loan offers from multiple lenders and compare costs and terms with other types of financing. Look for any benefits, such as rate discounts, a lender might provide for enrolling in autopay. Also, keep an eye out for disadvantages, including minimum loan amounts or expensive late payment fees.
3. Gather your loan documents
Be prepared to verify your income and financial information with documentation. This includes pay stubs, W-2s (or 1099s if you’re self-employed), and bank statements, to name a few.
4. Complete the loan application process
Depending on the lender you choose, you may have a fully online loan application, one that is conducted via phone and email, or even one that is conducted in person at a local branch. In some cases, your mortgage application could be a mix of these options. Your lender will review your application and likely order a home appraisal, depending on the type of loan. You’ll get approved and receive funding if your finances are in good shape.
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Home improvement loan lenders
When considering a home improvement loan, it’s necessary to explore various lending options to find the one that best suits your needs. The lending landscape for home improvement is diverse, featuring traditional banks, credit unions, and online lenders. Each type of lender offers different interest rates, loan terms, and eligibility criteria.
It’s advisable to prequalify with multiple lenders to get an estimate of your loan rates, which generally doesn’t affect your credit score. This way, you can compare offers and choose the most favorable terms for your renovation project.
Among the popular choices in the market, Sofi and LightStream stand out for their competitive rates, easy online application, and customer-friendly terms. Both are equal housing lenders, ensuring they adhere to federal anti-discrimination laws. In addition to these, other lenders like Wells Fargo and LendingClub also offer home improvement loans with varying terms and conditions.
How can I use the money from a home improvement loan?
When you do a cash-out refinance, a home equity line of credit, or a home equity loan, you can use the proceeds on anything — even putting the cash into your checking account. You could pay off credit card debt, buy a new car, pay off student loans, or even fund a two-week vacation. But should you?
It’s your money, and you get to decide. But spending home equity on improving your home is often the best idea because you can increase the value of your home. Spending $40,000 on a new kitchen remodel or $20,000 on finishing your basement could add significant value to your home. And that investment would be appreciated along with your home.
That said, if you’re paying tons of interest on credit card debt, using your home equity to pay that off would make sense, too.
Average costs of home renovations
Home renovations can vary widely in cost depending on the scope of the project, the quality of the materials used, and the region where you live. However, here’s a general idea of what you might expect to pay for various types of home renovations.
Renovation Type
Average Cost Range
Kitchen Remodel
$10,000 – $50,000
Bathroom Remodel
$5,000 – $25,000
Master Bedroom Remodel
$1,500 – $10,000
New Roof
$5,000 – $11,000
Exterior Paint
$6,000 – $20,000
Interior Paint
$1,500 – $10,000
New Deck
$15,000 – $40,000
Solar Panel Installation
$15,000 – $25,000
Window Replacement
$5,000 – $15,000
The information is based on data from HomeGuide.com and is current as of August 2023.
Please note that these are just average figures, and the actual costs can vary. For instance, a high-end kitchen remodel could cost significantly more, especially if you’re planning to use custom cabinetry and high-end appliances. Similarly, the cost of a new deck can vary depending on the size and type of materials used.
Home improvement loans FAQ
Check home improvement loan options and rates. Start here
What type of loan is best for home improvements?
The best loan for home improvements depends on your finances. If you have accumulated a lot of equity in your home, a HELOC, or home equity loan, might be suitable. Or, you might use a cash-out refinance for home improvements if you can also lower your interest rate or shorten the current loan term. Those without equity or refinance options might use a personal loan or credit cards to fund home improvements instead.
Should I get a personal loan for home improvements?
That depends. We’d recommend looking at your options for a refinance or home equity-based loan before using a personal loan for home improvements. That’s because interest rates on personal loans are often much higher. But if you don’t have a lot of equity to borrow from, using a personal loan for home improvements might be the right move.
What credit score is needed for a home improvement loan?
The credit score requirements for a home improvement loan depend on the loan type. With an FHA 203(k) rehab loan, you likely need a good credit score of 620 or higher. Cash-out refinancing typically requires at least 620. If you use a HELOC, or home equity loan, for home improvements, you’ll need a FICO score of 680–700 or higher. For a personal loan or credit card, aim for a score in the low-to-mid 700s. These have higher interest rates than home improvement loans, but a stronger credit profile will help lower your rate.
What is the best renovation loan
If you’re buying a fixer-upper or renovating an older home, the best renovation loan might be the FHA 203(k) mortgage. The 203(k) rehab loan lets you finance (or refinance) the home and renovation costs into a single loan, so you avoid paying double closing costs and interest rates. If your home is newer or of higher value, the best renovation loan is often a cash-out refinance. This lets you tap the equity in your current home and refinance into a lower mortgage rate at the same time.
Is a home improvement loan tax deductible?
Home improvement loans are generally not tax-deductible. However, if you finance your home improvement using a refinance or home equity loan, some of the costs might be tax-deductible.
Disclaimer: The Mortgage Reports do not provide tax advice. Be sure to consult a tax professional if you have any questions about your taxes.
Shop around for your best home improvement loan
As with anything in life, it pays to compare all your options. So don’t just settle on the first loan offer you find.
Compare lenders, mortgage types, rates, and terms carefully to find the best loan for home improvements.
Time to make a move? Let us find the right mortgage for you
Discover the transformative power of wallpapers for walls. Explore a diverse range of patterns, colors, and textures to redefine your living or working space.
This collection caters to every taste, providing options for easy installation, removal and repositioning. Elevate your interior design with these versatile and stylish wall coverings. The application is a breeze—simply peel and stick on any smooth, clean, and dry surface. Grid Lines on the back ensure easy measurement and cutting. Plus, it leaves no sticky mess when removed or repositioned.
List of best-selling wallpapers for walls online
Name
Amazon Rating
Amazon Price
Wolpin Wall Sticker – Textured Butterfly Leave
4.0 / 5
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Wolpin Wallpaper Stripe Living Room – Decal Silver
3.7 / 5
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Wolpin Wall Stickers DIY Wallpaper Pink Damask
4.1 / 5
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Wolpin Wall Stickers Textured Embossed
3.9 / 5
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Wolpin Wallpaper 3D Stone DIY
4.0 / 5
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Wolpin Wall Stickers DIY 3D Brick Ivy Vine
4.2 / 5
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Wolpin DIY Wallpaper Decal 3D Brick
4.1 / 5
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Wolpin Wall Stickers DIY Black Damask Luxury
4.1 / 5
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Wolpin DIY Wallpaper Floral Damask
4.1 / 5
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Wolpin Wall Stickers Floral Damask
4.1 / 5
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Wolpin Wallpaper DIY 3D Frames PVC
4.1 / 5
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Wolpin Wood Wallpaper
4.0 / 5
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Read more about other Home & Decor products on the Top Trending Products page. Read further for wallpapers for walls.
1. Wolpin Wall Sticker – Textured Butterfly Leave
Use Wolpin’s Textured Butterfly Leaves Wallpaper to liven up your interiors. This self-adhesive wonder is ideal for kitchens, living rooms, bedrooms, and other spaces as it brings a little bit of nature indoors. The wallpaper is not only aesthetically pleasing but also heat-resistant, waterproof, and made of premium PVC vinyl. Big rolls (45 x 300 cm) provide you plenty of coverage; a 10 ft by 10 ft wall only needs 7 rolls.
2. Wolpin Wallpaper Stripe Living Room – Decal Silver
Wolpin’s Home Renovation Stripe Wallpaper will bring life back into your living areas. This self-adhesive marvel works well in a variety of spaces, including offices, kitchens, and living rooms. The wallpaper is not only aesthetically pleasing but also heat-resistant, waterproof, and made of high-quality PVC vinyl. Extra-large 45 x 500 cm rolls provide a lot of covering; a 10 ft by 10 foot wall only needs 5 rolls.
Color options – 1
Material – Vinyl
Size options – 45 x 500 cm, 45 x 1000 cm, 45
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3. Wolpin Wall Stickers DIY Wallpaper Pink Damask
The Pink Damask Self-Adhesive Wallpaper from Wolpin will completely change your house. This wallpaper, which is made of high-quality PVC vinyl, is a great option for improving the walls of bedrooms, living rooms, kitchens, and other spaces. Furniture, counters, and even tiles get a sophisticated touch from the pink floral damask pattern.Five rolls, each measuring 45 x 500 cm, will suffice to cover a wall measuring 10 feet by 10 feet. In addition to being elegant, this decorative contact paper is heat-resistant, waterproof and detachable.
Wolpin’s Gold Damask Self-Adhesive Wallpaper will breathe new life into your house. With its embossed damask floral pattern, this decorative PVC wallpaper is a great option for a kitchen, living room, bedroom, and more. With ease, give tiles, cabinets, and furniture a textured, elegant appearance. A wall of ten feet by ten feet will require seven rolls, each measuring 45 x 300 cm.
Coloroptions – 3
Material – Polyvinyl Chloride
Size options – 45 x 300 cm, 45 x 600 cm, 45 x 1000 cm
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5. Wolpin Wallpaper 3D Stone DIY
With the 3D Stone Self-Adhesive Wallpaper from Wolpin, you can easily update your house. This natural stone-colored PVC vinyl wallpaper gives a sophisticated touch to any space. This wallpaper beautifully combines modern design with natural elements, making it ideal for use in bedrooms, living rooms, kitchens, and other spaces. A wall of ten feet by ten feet needs six rolls, each measuring 45 x 300 cm. With its removable, waterproof, and heat-resistant 3D stone wallpaper, Wolpin guarantees the safety of your walls. With the help of gridlines for simple cutting and measurement, just peel and stick on any smooth, clean, and dry surface.
Color options – 1
Material – Vinyl (PVC)
Size options – 45 x 300 cm, 45 x 1000 cm
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6. Wolpin Wall Stickers DIY 3D Brick Ivy Vine
Wolpin’s 3D Brick Vine Self-Adhesive Wallpaper will enhance the look of your home decor.A wall of ten feet by ten feet needs five rolls, each measuring 45 x 500 cm. Made from premium PVC vinyl, this wallpaper is heat-resistant, waterproof, reusable, and environmentally friendly. Your interiors will look more sophisticated with the white vine motif. Straightforward cutting and measuring are made easier by the gridlines on the back. Wolpin guarantees easy removal or reuse without leaving behind tacky residue.
Color options – 2
Material – Vinyl (PVC)
Size options – 45 x 500 cm, 45 x 1000 cm
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7. Wolpin DIY Wallpaper Decal 3D Brick
Upgrade the look of your house or place of business with Wolpin’s Smokin Red 3D Brick Self-Adhesive Wallpaper. Suitable for several areas such as living rooms, kitchens, bedrooms, and more, this wallpaper adds a striking and lively element to any home. Five rolls, each measuring 45 x 500 cm, are required to cover a wall measuring 10 feet by 10 feet. Made from premium PVC vinyl, this wallpaper is heat-resistant, waterproof, reusable, and environmentally friendly. Your interiors will have more life and character with the smokin’ red color. Applying is simple—just peel and attach to any dry, clean and flat surface.
Color options – 4
Material – Vinyl (PVC)
Size options – 45 x 500 cm, 45 x 1000 cm
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8. Wolpin Wall Stickers DIY Black Damask Luxury
Wolpin’s Black Damask Luxury Self-Adhesive Wallpaper will improve the visual appeal of your living areas. This elegant damask floral pattern is ideal for bedrooms, living rooms, kitchens, and other spaces as it lends refinement to walls. A wall of ten feet by ten feet needs five rolls, each measuring 45 x 500 cm. This wallpaper is made of premium PVC vinyl and is not only reusable but also heat-resistant, waterproof and environmentally friendly.
Color options – 1
Material – Vinyl
Size options – 45 x 500 cm, 45 x 1000 cm
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9. Wolpin DIY Wallpaper Floral Damask
The luxurious beauty of Wolpin’s Floral Damask Self-Adhesive Wallpaper will transform your room. This elegant damask floral pattern is perfect for bedrooms, living rooms, kitchens, and more. It gives walls a sophisticated touch. Five rolls, each measuring 45 x 500 cm, are required to cover a wall measuring 10 feet by 10 feet. This wallpaper is made of premium PVC vinyl and is not only reusable but also heat-resistant, waterproof, and environmentally friendly.
Color options – 2
Material – Vinyl
Size options – 45 x 500 cm, 45 x 1000 cm
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10. Wolpin Wall Stickers Floral Damask
The classic appeal of Wolpin’s Mustard Yellow Damask Self-Adhesive Wallpaper will elevate your living areas. Kitchens, living rooms, bedrooms, and other spaces are made more ambiance-enhancing by this lovely damask floral pattern. Five rolls, each measuring 45 by 500 cm, are enough to cover a wall that is 10 feet by 10 feet. The wallpaper is made of high-quality PVC vinyl and is not only reusable but also heat-resistant, waterproof, and environmentally friendly. Applying is simple—just peel and apply to any dry, clean, and smooth surface.
Color options – 2
Material – Vinyl
Size options – 45 x 500 cm, 45 x 1000 cm
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11. Wolpin Wallpaper DIY 3D Frames PVC
Wolpin’s Active Blue 3D Frames Self-Adhesive Wallpaper is a multipurpose option that can be used to transform living areas such as kitchens, living rooms, and bedrooms. Five rolls, each measuring 45 x 500 cm, are enough to cover a wall that is 10 feet by 10 feet. This wallpaper is made from high-quality PVC vinyl and is waterproof, heat-resistant, and environmentally friendly. Applying is simple—just peel and apply to any dry, clean, and smooth surface. Easy cutting and measuring are ensured by the grid lines on the back. Wolpin ensures simple removal or reusing without producing gooey residue.
Color options – 5
Material – Polyvinyl Chloride
Size options – 45 x 500 cm, 45 x 1000 cm, 45 x 2000 cm
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12. Wolpin Wood Wallpaper
Wolpin’s Mahogany Brown Wood Self-Adhesive Wallpaper will revitalize your living areas; it’s the ideal replacement for cabinets, refrigerators, furniture, and more. Seven rolls, each measuring 45 x 300 cm, are enough to cover a wall that is 10 feet by 10 feet. Made from premium PVC vinyl, this wallpaper is heat-resistant, waterproof, reusable, and environmentally friendly. Wolpin’s Mahogany Brown Wood Wallpaper will elevate your décor and infuse your house with a sense of warmth and refinement.
Color options – 3
Material – Polyvinyl Chloride
Size options – 45 x 300 cm, 45 x 600 cm, 45 x 1200 cm
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FAQs about wallpapers for wall
Q1. Are wallpapers suitable for all wall types?
Ans. Wallpapers can be applied to various surfaces, including drywall and plaster. However, it’s essential to ensure the wall is smooth, clean, and prepared according to the wallpaper manufacturer’s recommendations.
Q2. Can wallpapers be used in high-moisture areas like bathrooms?
Ans. Moisture-resistant wallpapers are suitable for bathrooms. However, direct water exposure should be avoided. Vinyl or washable wallpapers are recommended for better durability in humid conditions.
Q3. How do I clean and maintain wallpapered walls?
Ans. Cleaning methods vary based on the wallpaper type. Most wallpapers can be lightly dusted or wiped with a damp cloth. Always follow the specific cleaning instructions provided by the manufacturer.
Disclaimer : The above content is non-editorial and produced by a third party advertiser. Times Internet Limited/ Economic Times does not guarantee, vouch for or endorse any of the content or its genuineness. The product prices mentioned in the article are subject to change including depending upon offers given by Amazon.
Many people mistakenly believe they can’t afford to buy a home because they don’t really know what their options are. Fortunately, home loans are not one-size-fits-all. There are various mortgages available to suit your budget and preferences.
So, before you start visiting open houses, take some time to familiarize yourself with the different home loans that are available. Going into the home buying process informed could help you save a lot of money on your down payment, interest, and fees.
The 8 Types of Mortgage Loans Available
Understanding the different types of mortgage loans will help you choose the option that’s best suited for you. Let’s look at a brief overview of the eight types of mortgages available in 2024.
1. Conventional Loans
A conventional loan is a mortgage that’s not issued by the federal government. There are two different types of conventional mortgages you can choose from: conforming and non-conforming loans.
A conforming loan falls within the guidelines laid out by Fannie Mae and Freddie Mac. You’ll take out a conforming loan through a private lender like a bank, credit union, or mortgage company. Since the government doesn’t guarantee the loan, conventional mortgages typically come with more stringent lending requirements.
According to the CFPB, the maximum loan amount for a conventional loan is $484,350. However, it may be as high as $726,525 in counties with a high cost of living. You’ll have to take out private mortgage insurance (PMI) if you don’t have a 20% down payment.
Conventional loans are fixed-rate mortgages, which means your monthly mortgage payment remains the same throughout the entire life of the mortgage loan. The terms typically range from 10 to 30 years:
30-year fixed-rate mortgage
20-year fixed-rate mortgage
15-year fixed-rate mortgage
10-year fixed rate mortgage
Pros:
It can be used to purchase a primary home or an investment property
Tends to cost less than other types of loans
You can cancel your private mortgage insurance (PMI) once you reach 20% equity in your home
Cons:
Must have a minimum FICO score of 620 or higher
Harder to qualify for than government-backed loans
You’ll need to have a low debt-to-income ratio to qualify
2. Conventional 97 Mortgage
A conventional 97 mortgage is similar to a conventional loan in that it’s widely available to various borrowers. The main difference is that with this type of home loan, you only have to pay a 3% down payment.
The program is available for first-time and repeat home buyers. However, it must be your primary place of residence, and the maximum loan amount is $510,400.
Pros:
Widely available to most borrowers
Only requires a 3% down payment
Available for first-time and repeat homebuyers
Cons:
Cannot be used to purchase investment properties
The maximum loan amount is $510,400
Requires a minimum FICO score of 660 or higher
3. FHA Loans
FHA loans are backed by the Federal Housing Administration and are a popular option for first-time home buyers. To qualify, you need to have a 3.5% down payment and a minimum credit score of 580.
If you have a credit score of 500 or higher, you can qualify for an FHA loan with a 10% down payment. These flexible requirements make FHA loans a suitable option for borrowers with bad credit.
To qualify for an FHA home loan, you must have a debt-to-income ratio of 43% or less. These loans can’t be used to purchase investment properties, and your home must meet the FHA’s lending limits.
These limits vary by state, so you’ll need to check the FHA’s website to see what the guidelines are for your area.
Pros:
Loans come with low down payment options
A viable option for borrowers with bad credit
Available for first-time and repeat homeowners
Cons:
Loans can’t be taken out for investment properties
If your credit score is below 580, a 10% down payment is required
You must have a debt-to-income ratio below 43%
Mandatory mortgage insurance premiums
4. FHA 203(k) Rehab Loans
An FHA 203(k) rehab loan is sometimes referred to as a renovation loan. It allows home buyers to finance the purchase of their home and any necessary renovations with a single loan.
Many people purchase older homes to fix them up. Instead of taking out a mortgage and then applying for a home renovation loan, you can accomplish both within a single mortgage.
A rehab loan is similar to an FHA loan in that you’ll need a 3.5% down payment. However, the credit requirements are stricter, and you’ll need a minimum credit score of 640 to qualify.
Pros:
Allows you to buy a home and finance the remodel within one mortgage
Requires a minimum 3.5% down payment
Easier to qualify since the FHA backs your loan
Cons:
Credit requirements are more stringent than typical FHA loans
You must hire approved contractors and cannot DIY the renovations
The closing process takes longer than other types of mortgages
5. VA Loans
The Department of Veteran Affairs guarantees VA loans. These loans are designed to make it easier for veterans and service members to qualify for affordable mortgages.
One of the biggest advantages of taking out a VA loan is that it doesn’t require a down payment or mortgage insurance premium (MIP). And there are no listed credit requirements, though the lender can set their own minimum credit requirements. VA loans typically come with a lower interest rate than FHA and conventional loans.
To qualify for a VA loan, you must either be active duty military, a veteran or honorably discharged. You’ll need to apply for your mortgage through an approved VA lender.
Pros:
No down payment required
No PMI required
Flexible credit requirements
Cons:
Must be a veteran to qualify
Some sellers will not want to deal with a VA loan
6. USDA Loans
A USDA loan is a type of mortgage that’s available for rural and suburban home buyers. It’s a viable option for borrowers with lower credit scores that are having a hard time qualifying for a traditional mortgage.
USDA loans are backed by the U.S. Department of Agriculture, and they help low-income borrowers find housing in rural areas. USDA loans do not require a down payment, but you will need a minimum credit score of 640 to qualify.
You will need to meet the USDA’s eligibility requirements to qualify for the loan. But according to the department’s property eligibility map, over 95% of the U.S. is eligible.
Pros:
No down payment required
A practical option for low-income borrowers
Available to first-time and repeat home buyers
Cons:
A minimum credit score of 640 is required
Housing is limited to rural and suburban areas
7. Jumbo Loans
A jumbo loan is a mortgage that exceeds the financing guidelines laid out by the Federal Housing Finance Agency. These loans are unable to be purchased or guaranteed by Fannie Mae or Freddie Mac.
A jumbo mortgage is financing for luxury homes in competitive real estate markets, and the limits vary by state. In 2024, the FHFA raised the limits for a one-unit property to $766,550, increasing from $726,200 in 2023. In certain high-cost areas, the limits for jumbo loans vary, reaching up to $1,149,825. These jumbo loans are for mortgages that exceed the set limits in their respective counties.
If you’re hoping to buy a home that costs more than $1 million, you’ll need to take out a super jumbo loan. These loans provide up to $3 million to purchase your home. Both jumbo and super jumbo mortgages can be difficult to qualify for and require excellent credit.
Pros:
These loans make it possible to purchase large homes in expensive areas
Typically comes with flexible loan terms
Cons:
Jumbo loans and super jumbo loans come with higher interest rates
You’ll need a good credit history to qualify
8. Adjustable Rate Mortgages (ARMs)
Unlike a fixed-rate mortgage, where the interest rate is set for the life of the loan, an adjustable-rate mortgage (ARM) comes with interest rates that fluctuate. Your interest rate depends on the current market conditions.
When you first take out an ARM, you will typically start with a fixed rate for a set period of time. Once that introductory period is up, your interest rate will adjust on a monthly or annual basis.
An ARM can be a suitable option for some borrowers because your interest rate will likely be low for the first couple of years you own the home. But you need to be comfortable with a certain level of risk.
And if you choose to go this route, you should look for an ARM that caps the amount of interest you pay. That way, you won’t find yourself unable to afford your monthly payments when the interest rates reset.
4 Types of ARMs
There are 4 different types of adjustable-rate mortgages typically offered:
One Year ARM – The one-year adjustable-rate mortgage interest rate changes every year on the anniversary of the loan.
10/1 ARM – The 10/1 ARM has an initial fixed interest rate for the first ten years of the mortgage. After 10 years is up, the rate then adjusts each year for the remainder of the mortgage.
5/5 and 5/1 ARMs – ARMs that have an initial fixed rate for the first five years of the mortgage. After 5 years is up, for the 5/5 ARM, the interest rate changes every 5 years. For the 5/1 ARM, the interest changes every year.
3/3 and 3/1 ARMs – Similar to the 5/5 and 5/1 ARMs, except the initial fixed-rate changes after 3 years. For the 3/3 ARM, the interest rate changes every 3 years and for the 3/1 ARM, it changes every year.
Pros:
Interest rates will likely be low in the beginning.
If you pay the loan off quickly, you could pay a lot less money in interest.
Cons:
Your monthly mortgage payments will fluctuate.
Many borrowers have gotten into financial trouble after taking out an ARM.
Choosing the Right Home Loan
When it comes to choosing a home loan, you need to consider a few key factors. First, you’ll want to think about the type of loan that is best suited to your needs.
Fixed-rate mortgages offer stability and predictability, while adjustable-rate mortgages (ARMs) can be a viable option for those who expect their income to increase significantly over time. You’ll also want to consider your budget and how much you can afford to borrow, as well as the size of your down payment and the length of the loan term.
It’s also crucial to shop around and compare offers from multiple mortgage lenders. While it’s tempting to go with the first lender you find, it pays to do your homework and see what other options are available.
This can help you get a better rate and more favorable terms on your loan. It’s a good idea to get quotes from at least three different lenders, and to consider both traditional banks and online lenders.
Tips for Getting the Best Rates and Terms
One of the most effective strategies is to improve your credit score. Lenders look closely at credit scores when deciding whether to approve a loan. Those with higher scores are typically offered better terms. You can improve your credit score by paying your bills on time, reducing your debt, and correcting any errors on your credit report.
Another tip is to make a larger down payment, which can help you secure a lower interest rate and reduce the size of your monthly payments. Finally, consider working with a mortgage broker, who can help you shop around and find the best deal.
Bottom Line
As you can see, there are many home loans for you to choose from. The type of mortgage that’s best for you will depend on your current income and financial situation.
If you’re not sure where to start, consider working with a qualified loan officer. They can assess your situation and recommend the option that will be best for you.
Since the calendar turned to 2024, the internet has been abuzz with trend reports and home decor predictions that offer a glimpse into what lies ahead in the world of interior design.
For many, these lists may seem overwhelming, especially if you’re not planning to embark on a full-scale renovation this year. But fret not; there are simpler ways to elevate your home by getting creative with a DIY project or two.
Below, we’ll introduce you to 7 home trends experts predict will be big in 2024 and the DIY projects that can help you breathe new life into your living spaces.
DIY Projects That Will Elevate Your Home
Get your toolbox ready. From textured walls to living walls, home renovation experts predict these DIY projects are exactly what you need to elevate your home in 2024.
1. Using reclaimed materials
As more and more of us aspire to make eco-friendly home improvements in 2024, it’s no surprise that using reclaimed and recycled materials is gaining popularity among DIY enthusiasts.
Beyond their environmental benefits, reclaimed and salvaged materials bring a distinctive ‘well-loved’ quality that enriches interior designs with texture and depth. The weathered patina of reclaimed wood, for instance, can seamlessly enhance a home with a modern rustic style, while salvaged fireplaces and reclaimed bricks effortlessly complement modern farmhouse aesthetics. These materials possess a timeless charm, making them an ideal choice for elevating your home’s overall look.
If you’re seeking a quick and manageable DIY project that can be completed in an afternoon, consider exploring your local antique market for a set of vintage drawers and transform them into a unique plant display. Alternatively, give rustic scaffolding boards a fresh lease on life as distinctive kitchen shelves, or reimagine tin ceiling tiles as a one-of-a-kind kitchen backsplash.
For those willing to take on a slightly larger project, a salvaged barn door can be flipped into a statement headboard, and ordinary internal doors and windows can be replaced with antique shutters to achieve a truly bespoke finish.
2. Adding texture to walls
While the memories of popcorn ceilings and orange peel walls might remind you of outdated interior design trends from yesteryears, wall texture is poised to make a stylish comeback in 2024.
Embrace the classic elegance of a knockdown finish or the rustic charm of limewash paint to infuse subtle drama into your walls. For a touch of warmth, consider decorative plasters like stucco or tadelakt. The beauty of these unique finishes is that they can be applied to your walls through a DIY approach using a trowel or roller, making it a cost-effective way to enhance your home’s ambiance.
And remember, texture doesn’t have to be just tactile. There are plenty of ways to introduce visual texture to your walls. Leading industry names like Benjamin Moore are bringing color-washed walls back into the spotlight this year, and even famous figures like Blake Lively are embracing this trend in their own homes.
3. Biophilic home improvements
‘In 2024, biophilic design and creating healthier living spaces are poised to be prominent trends,’ predicts Christine Marvin, Vice President of Strategy & Design at Marvin. To fully embrace this trend, consider decorating with plants, choosing natural color palettes and materials, or increasing natural light in your living areas.
Kriss Swint, design lead at Westlake Royal Building Products, emphasizes the importance of a closer connection with nature and its elements, citing potential benefits like increased well-being and productivity. ‘Growing concerns about wellness and the environment are driving demand for backyard improvements and the integration of nature into design. This includes features like green roofs, large windows, and living walls.’
wooden kitchen cabinetry is predicted to dominate kitchen trends this year.
However, before you jump into a full-scale kitchen remodel, consider that you can revamp this space without breaking the bank by resurfacing or refinishing your existing cabinet fronts.
Rather than reaching for your hammer right away, consider stripping paint from wood cabinets you already have to reveal the material beneath. Alternatively, you can replace your current kitchen cabinet fronts with custom-made ones that perfectly fit your space. Consult a local woodworker for bespoke cabinetry tailored to your kitchen’s dimensions or explore options like preloved wooden cabinet fronts available in salvage yards or online marketplaces.
‘A great DIY hack for achieving premium quality without overspending is using Ikea cabinets combined with custom fronts,’ says Archie Tkachoff, Founder of Arteum.design. ‘This approach is not only cost-effective but also versatile, allowing for the application of custom doors on new and existing cabinets.’
Archie Tkachoff
walk-in pantry?
‘In 2024, we expect to see pantries being upgraded with intelligent organization solutions, providing more space and functionality,’ predicts Laurel Vernazza, Home Design Expert at The Plan Collection. ‘When designed with floor-to-ceiling storage, the walk-in pantry can be used to conceal air fryers, coffeemakers, and larger appliances such as dishwashers, with plenty of room for pots and pans, spices, and dry goods’.
Simply clear the kitchen closet and assess its layout. Install adjustable shelving for better storage, add hooks or racks for spices and dried goods, and improve visibility with an overhead light.
Laurel Vernazza
2-Tier Stainless Steel Lazy Susan
Butterfly Ginkgo K-Cup Carousel
coffee station or walk-in pantry.
Royal Check Large Enamel Canister
wainscotting.
7. DIY built-in bookshelves
The classic built-in bookshelf remains a popular choice for 2024, and it’s easy to see why. With just a modest amount of DIY expertise, you can easily turn an ordinary bookshelf into a faux built-in feature that instantly elevates your home.
Start by measuring your space and acquiring the right number of standalone bookcases for the job. We recommend options such as Ikea’s Billy bookcase or Wayfair’s Lagner bookcase, as they are well-suited to this task. Securely anchor these bookcases to the wall, ensuring they are level and perfectly aligned.
To achieve that coveted built-in appearance, add a plywood surround, crown molding, or decorative trim that complements your room’s style. After carefully caulking and sanding any rough edges, apply paint or stain to the bookshelves, allowing them to seamlessly blend into their surroundings.
Home renovation trends are typically less transient than paint trends, such as the color of the year, and can significantly improve the aesthetic and functionality of your home.
Whether you’re buying a house or a car, financing a wedding or vacation, embarking on a major home renovation, paying for rising medical costs, or even consolidating debt, you might need to take out a loan.
But what about when you’re retired?
Even though they don’t earn a traditional income from a paying job, retirees can still take out loans. Requirements for retirees to secure a loan might be a little stricter, but it’s certainly possible.
Below, we’ll dive into loans for retired people — how they work, common types, and where to find them.
What Are Retiree Loans?
A retiree loan is any loan that you take out in retirement. It doesn’t refer to one specific type of loan, but rather a collection of loan types available to anyone in retirement, as long as they qualify.
Qualifying for a loan as a retiree can be more challenging than someone who is still employed full-time, since lenders like to see steady income. But many retirees have reliable sources of income outside of a job that can help them qualify. 💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.
Considerations for a Loan
When considering loans for retired individuals, lenders may consider a number of income sources, as well as an applicant’s debt-to-income ratio and credit score.
Retirement Income
One of the main sources of income for seniors who no longer work is their retirement accounts. If you are retired, you might receive regular payments from an IRA, 401(k), pension, and/or Social Security.
Collectively, these accounts make up your retirement income. And they may be significant enough to take out a retiree loan, like a personal loan, car loan, or even a mortgage.
Fixed Income
Retirees may have other sources of fixed income beyond their retirement income. For example, retirees might earn income from investments, earn annuity income, or receive spousal or survivor’s benefits. Retirees may also generate revenue from rental properties.
If any of these are limited sources of income — that is, they’ll run out eventually — the lender might require proof that you’ll at least receive that income for a set number of years. Without that proof, they might not factor in that source of income when determining loan eligibility.
Some retirees continue to work, whether full- or part-time or even as a contractor. If you’ve taken up a side hustle, like driving for a rideshare service or acting as a consultant in the field from which you retired, your 1099 income may also help when applying for a loan in retirement.
Assets
Retirees who have a significant portion of their money tied up in assets may be able to leverage those assets to secure a loan. For example, mortgage lenders might offer a securities-backed loan.
Securities-backed loans offer retirees liquidity without selling their assets. Instead, the lender can claim ownership of your assets — stocks, bonds, and real estate, for instance — if you default on your loan.
Because investment values fluctuate, a lender will likely consider only a reduced value of your assets (up to 70%). This protects them in the event that your assets decrease in value during the life of the loan.
Debt-to-Income Ratio
Lenders consider more than just your income when you apply for a loan, especially in retirement. They’ll also look at your debt — and thus your debt-to-income (DTI) ratio.
Your debt-to-income ratio is a calculation of all your monthly debts divided by your gross monthly income. This might include credit card debt, mortgage payments, car loans, personal loans, and even student loans.
For example, if your monthly debts total $2,000 and your monthly income is $10,000, your DTI ratio is 2,000 / 10,000. That’s 0.20, or 20%.
The higher your DTI ratio, the less likely a lender is to approve you for a loan. While requirements will vary by lender and the type of loan you’re applying for, you’ll likely have a harder time securing a loan if your debt-to-income is 50% or higher.
Credit Score
As with any other loan, lenders will also factor in your credit score when you apply for a retiree loan. By improving your credit score, you increase your chances of getting a loan.
So what affects your credit score? Generally, five key factors can influence your rating:
• Credit utilization
• Payment history
• Credit history length
• Credit mix
• New credit
Retirees generally have longer credit histories, especially if they keep credit cards open and have been paying a mortgage for decades. By paying your bills on time, keeping your credit usage down, and resisting the temptation to apply for new credit cards, retirees may be able to raise their credit scores ahead of applying for a larger loan in retirement.
Where to Find a Retiree Loan
Retirees can look for loans in the same places that other borrowers do. Financial institutions like banks and credit unions generally offer a wide range of loans, from mortgages and car loans to personal loans and debt consolidation loans. Your own bank or credit union is a good place to start.
Where you get a retiree loan can also depend on the type of loan. For example, if you’re purchasing a new car, the dealership may help you find financing. When you work with a real estate agent to buy a home, they might put you in touch with a lender.
Common Retiree Loans
Retirees have access to a wide range of loans depending on their needs. Here are some of the most common types of retiree loans you might come across:
Home Equity Loan
A home equity loan allows you to borrow against the equity you’ve built in your house. You generally need to have paid off at least 15% to 20% of your home to have enough equity for a loan; the more you’ve paid off, the larger the loan could be.
You might use a home equity loan to fund a renovation project, medical payments, or even debt consolidation. But remember, your house serves as collateral, so it’s important to make your payments.
Reverse Mortgage Loan
Reverse mortgage loans are available to people who are 62 or older who have paid off most of their mortgage or own their homes outright. When you get a reverse mortgage, you retain the title to the home and don’t have to pay the loan (and interest) until the last surviving borrower has moved out permanently.
Reverse mortgage loans are not for everyone. Weigh the pros and cons of a reverse mortgage before moving forward.
Debt Consolidation Loan
Retirees who are struggling with various debts may choose to consolidate in a single loan, ideally at a lower interest rate. Consolidating your debt means only a single monthly payment, but it could extend the number of years it’ll take you to be debt-free. 💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why SoFi credit card consolidation loans are so popular.
401(k) Loan
If you’re strapped for cash ahead of retirement, you may be able to borrow from your 401(k) account balance before you start receiving distributions. Doing so has certain tax implications to review with your accountant.
Unfortunately, you cannot take out an IRA loan, though if you’re 59 ½ or older, you may be able to make early withdrawals penalty-free.
Personal Loan
You can take out a personal loan for almost anything — wedding costs, home improvements, even credit card debt consolidation. Personal loan interest rates and terms vary depending on the length of the loan. For example, SoFi offers personal loans with low interest rates, and there are no fees required.
Just make sure you have the right credit score for a personal loan before applying. Bad credit borrowers may qualify, but the interest rates can be significantly higher.
Payday Loan
Seniors in retirement may also take out payday loans in an emergency, but keep in mind that there are a lot of risks with payday loans, including high costs.
Requirements for Getting a Personal Loan as a Senior Citizen
Lenders have similar requirements for all applicants, including retirees. The notable difference is that your sources of income will be different from an employed individual receiving a steady paycheck.
Here’s what lenders will generally look for when deciding to approve your loan application:
• Your sources of income (retirement distributions, Social Security, investment revenue, part-time work, etc.)
• Age (some lenders may not give out loans to borrowers who are 75 or older)
• Credit score
• Debt-to-income ratio
• Collateral or assets
The Takeaway
Retiree loans refers to any loan you take out in retirement. Depending on your needs and financial goals, it may make sense to apply for a personal loan, home equity loan, 401(k) loan, debt consolidation loan, or other loan type. Retiree loan requirements are similar to those of any other borrower; you’ll just have to demonstrate other sources of income since you’re no longer employed full-time.
You’ll also need a low debt-to-income ratio and a high credit score.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
FAQ
What are retiree loans?
Retiree loans are any type of loan you get in retirement. Retirees may take out personal loans, mortgages or reverse mortgages, home equity loans, and even debt consolidation loans.
What are the requirements for a retiree loan?
Requirements for a retiree loan are similar to those of other borrowers. Lenders will need to see all your sources of income, and you’ll also need a low debt-to-income ratio (generally below 50%) and high credit score (requirements vary by type of loan). You’ll also need assets to back up a secured loan.
Where can I get a retiree loan?
Retirees can look for loans anywhere that other borrowers might apply for a loan. Common retiree loans include home equity loans, 401(k) loans, debt consolidation loans, and personal loans. Because retirees typically no longer have a traditional source of income (i.e., a paying job), they may have to meet additional requirements to qualify for a loan.
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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates down for the most part this week, though current mortgage refinance rates have inched up on a few different terms compared to a week ago. But in spite of some fluctuations, rates are down dramatically from last month.
Average 30-year mortgage rates are continuing to inch down closer to 6%, and they’re currently the lowest they’ve been since spring 2023.
Most experts believe that mortgage rates will continue to go down in 2024 as the economy continues to normalize and the Federal Reserve is able to start lowering the federal funds rate.
The Fed can impact mortgage rates indirectly through changes to the federal funds rate, and the central bank has indicated it will likely start cutting this rate next year. This will take a lot of the upward pressure off of mortgage rates, allowing them to ease. After watching mortgage rates skyrocket over the last couple of years, hopeful homebuyers can finally look forward to improved mortgage affordability in the new year.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
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Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
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Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Fall (-0.16%)
The current average 30-year fixed mortgage rate is 6.15%, down 16 basis points since this time last week. This rate is down significantly compared to a month ago, when it was 6.93%.
At 6.15%, you’ll pay $609 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Drop (-0.21%)
The average 20-year fixed mortgage rate is also down a bit from last week, and is sitting at 5.71%. This time last month, the rate was 6.57%.
With a 5.71% rate on a 20-year term, your monthly payment will be $700 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Inch Down (-0.09%)
The average 15-year mortgage rate is 5.44%, just a few points down from from last week. It’s now much lower compared to this time last month, when it was 6.32%.
With a 5.44% rate on a 15-year term, you’ll pay $814 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Creep Up (+0.06%)
The 7/1 adjustable mortgage rate is up six points from a week ago, currently at 6.74%. But it’s down compared to this time last month, when it was at 6.95%.
At 6.74%, your monthly payment would be $648 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Fall Half a Percentage Point (-0.53%)
The average 5/1 ARM rate is 6.17%, a 53-point drop from last week. It’s also lower than it was a month ago, when it was 7.25%.
Here’s how a 6.17% rate would affect you for the first five years: You’d pay $611 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Essentially Flat (-0.02%)
The average 30-year FHA interest rate is 5.67% today, which is down just two basis points from this time last week. This rate was 6.02% a month ago.
At 5.67%, you would pay $579 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Go Down (-0.19%)
The current VA mortgage rate is 5.45%, 19 basis points down from this time last week. This rate was 6.11% a month ago.
With a 5.45% rate, your monthly payment would be $565 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Go Up (+0.10%)
The average 30-year refinance rate is 6.33%, just 10 basis points higher than last week. But it’s down quite a bit compared to a month ago, when it was 7.17%.
Here’s how a 6.33% rate would affect your monthly payments: You’d pay $621 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Inch Up (+0.08%)
The current 20-year fixed refinance rate is 5.89%, which is just eight basis points up compared to a week ago. This rate was 6.93% this time last month.
A 5.89% rate on a 20-year term will result in a $710 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Increase (+0.26%)
The average 15-year fixed refinance rate is 6.00%, which is up 26 points compared to last week. This rate is lower compared to this time a month ago, when it was at 6.78%.
A 6.00% rate on a 15-year term means you’ll pay $844 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Decrease (-0.44%)
The average 7/1 ARM refinance rate is 6.10%, down from where it was last week. A month ago, it was much higher at 7.24%.
Refinancing into a 7/1 ARM with a 6.10% rate means your monthly payment toward principal and interest will be $606 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Tick Down (-0.27%)
The 5/1 ARM refinance rate is 6.30%, 27 basis points down from last week. It’s also down compared to this time last month, when it was 7.28%.
A 6.30% rate will result in a monthly payment of $619 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Drop (-0.23%)
The 30-year FHA refinance rate is 5.53%, which down a bit compared to last week. This rate was 6.09% this time last month.
A 5.53% refinance rate would lead to a $570 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Increase Very Slightly (+0.07%)
The average 30-year VA refinance rate is 5.62%, which is seven basis points higher than it was last week. This rate was 6.50% a month ago.
At 5.62%, your new monthly payment would be $575 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have risen throughout 2023, and they’re higher than they were in December 2022.
But rates have started trending down in recent weeks, and we should continue to see them fall in 2024 and 2025.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates are holding steady this week after dropping dramatically over the past couple of months. Compared to this time last month, when average 30-year mortgage rates were still above 7%, rates are now down more than 70 basis points. And they’re down well over a full percentage point from where they were in October.
And there’s more good news: most experts believe mortgage rates will go down even more in 2024.
Mortgage rates are down in anticipation of Federal Reserve rate cuts in 2024. Though mortgage rates aren’t directly tied to Fed policy decisions, the Fed can impact mortgage rates indirectly when it makes changes to the federal funds rate. Lowering this rate next year should remove a significant amount of upward pressure off of mortgage rates and allow them to steadily trend down.
This means that more homebuyers will be able to jump back into the market after being sidelined by sky-high rates this year. But this surge in demand will likely push up home prices, limiting the amount of affordable inventory for many buyers.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
30-year Fixed Mortgage Rates
The average 30-year fixed mortgage rate was 6.67% last week, according to Freddie Mac. This is a 28-basis-point decrease from the previous week.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-year Fixed Mortgage Rates
Last week, average 15-year mortgage rates were 5.95%, a 43-basis-point decrease from the previous week, according to Freddie Mac data.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
When Will Mortgage Rates Go Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Rates have increased dramatically this year, though they’ve been trending back down in recent months.
As inflation comes down, mortgage rates will recede as well. We may see 30-year rates fall closer to 6% by the end of 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
How Do Fed Rate Hikes Affect Mortgages?
The Federal Reserve has been increasing the federal funds rate this year to try to slow economic growth and get inflation under control. So far, inflation has slowed, but it’s still above the Fed’s 2% target rate.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
Fed hikes have pushed mortgage rates up over the last two years. But the Fed has indicated that it’s likely done hiking rates and could start cutting in 2024. Once the Fed cuts rates, mortgage rates should fall even further.