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Have you ever wondered, “Should I move to Fort Worth?” If so, you’re in the right place. As the fifth-largest city in Texas, Fort Worth offers a unique blend of urban amenities and natural beauty, with sprawling parks and scenic trails attracting outdoor enthusiasts year-round. Whether you’re in search of a charming apartment in the North Side neighborhood or eyeing a spacious ranch-style home in the suburbs, Fort Worth is a great place to set down roots. But before packing your bags, it’s a good idea to make sure your lifestyle fits with this city. In this article, we’ll discuss the pros and cons of living in Fort Worth to help you make your decision. Let’s get started.
Walk Score: 35 | Bike Score: 39 | Transit Score: 22
Median Sale Price: $330,375 | Average Rent for 1-Bedroom Apartment: $1,400
Fort Worth neighborhoods | houses for rent in Fort Worth | apartments for rent in Fort Worth | homes for sale in Fort Worth
Fort Worth’s economy is on the rise, with sectors like aerospace, manufacturing, and technology leading the charge. Companies like Lockheed Martin and American Airlines provide locals with ample employment options. This economic growth attracts people from various fields, making it a city with plenty of opportunities.
One of the challenges of living in Fort Worth is the limited public transportation. With a Transit Score of 22, it’s apparent the city’s layout and infrastructure focuses more on vehicular traffic. This can be a hurdle for those without cars or those who prefer eco-friendly commuting options. It affects daily commutes and accessibility to different parts of the city.
Fort Worth stands out with its deep-rooted cowboy culture. The city is home to the Cowtown Coliseum, the world’s first indoor rodeo in 1918, a testament to its Western heritage. The Stockyards offer a unique glimpse into the past with cattle drives and live music. This cultural richness provides residents with a unique lifestyle, blending modernity with tradition.
The city experiences extremely hot summers, with temperatures often soaring above 100°F. This can limit outdoor activities during peak summer months and increase reliance on air conditioning, affecting both comfort and utility expenses. It’s a significant consideration for those moving from cooler climates.
Fort Worth is home to numerous parks and green spaces, like the Fort Worth Botanic Garden and Trinity Trails. These areas offer residents a chance to enjoy nature, exercise, and relax within the city limits. The commitment to maintaining these spaces provides a quality of life that balances urban living with nature.
While Texas has no state income tax, Fort Worth residents face high property taxes. This can significantly affect homeownership costs, making it a crucial factor for potential buyers to consider. It impacts long-term financial planning for residents and potential newcomers.
Fort Worth’s culinary scene has it all, from traditional Texan barbecue to delicious international cuisine. The city holds an abundance of restaurants, eateries, and food establishments catering to diverse tastes and preferences. Iconic establishments like Heim Barbecue and Angelo’s Bar-B-Que serves up mouthwatering brisket, ribs, and smoked meats. Additionally, Fort Worth boasts a thriving food truck culture, with popular spots like Salsa Limón and The Beignet Bus offering a wide range of creative and enticing street food options.
Living in Fort Worth means dealing with Texas’s unpredictable weather, including tornadoes and hailstorms. These weather events can cause disruption and require residents to be prepared for emergencies. It’s a natural aspect of life in the region that newcomers need to consider.
The sense of community in Fort Worth is palpable. Neighborhoods often host events and festivals, fostering a strong bond among residents. One example is the annual Fort Worth Stock Show & Rodeo. This beloved event brings together locals and visitors alike to celebrate Western culture and heritage through livestock exhibitions, rodeo events, and more. Additionally, Fort Worth hosts numerous festivals and events throughout the year, such as the Main Street Arts Festival and Mayfest, which showcase local artists, musicians, and performers, fostering a sense of pride and unity among residents.
Fort Worth’s growing popularity has led to a somewhat competitive housing market. Finding affordable housing can be a challenge, especially in neighborhoods close to downtown. This competition can make it difficult for first-time buyers and renters to find their ideal home within their budget.
Fort Worth offers locals access to quality higher education institutions renowned for their academic excellence and diverse programs. Texas Christian University (TCU), located in the heart of Fort Worth, stands as one of the city’s premier institutions. The university is known for its strong emphasis on undergraduate education and prestigious Neeley School of Business. TCU offers a wide range of undergraduate and graduate programs, including business, engineering, nursing, and liberal arts. Additionally, Texas Wesleyan University, a private liberal arts institution, offers a variety of undergraduate and graduate programs, with a focus on professional preparation and community engagement. These institutions, along with others like Tarleton State University – Fort Worth, provide residents with ample opportunities for academic growth and development.
Due to its hot climate and occasional droughts, Fort Worth sometimes implements water restrictions during the summer. These restrictions can affect gardening, lawn maintenance, and even some recreational activities. It’s an environmental consideration that reflects the city’s efforts to conserve water but can be a limitation for residents.
Source: rent.com
Americans Believe They Will Need $1.46 Million to Retire Comfortably According to Northwestern Mutual 2024 Planning & Progress Study People’s ‘magic number’ for retirement rises faster than inflation, jumping 15% in just a year and a whopping 53% since 2020; while retirement savings falls to $88K The ‘Silver Tsunami’ is here: 11,000 Americans will turn 65 … [Read more…]
Mortgage loans refinancing declined for the week ending March 22, contributing to a drop in home loans applications even as interest rates decelerated, data from the Mortgage Bankers Association (MBA) showed on Wednesday.
The Refinance Index fell 2 percent from the prior week and was 9 percent lower compared to a year ago. Overall, mortgage applications dropped by 0.7 percent at a time when the 30-year fixed rate mortgage ticked down to 6.93 percent from the prior week’s 6.97 percent.
“Mortgage application activity was muted last week despite slightly lower mortgage rates. The 30-year fixed rate edged lower to 6.93 percent, but that was not enough to stimulate borrower demand,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement shared with Newsweek.
Read more: What is Mortgage Refinancing and How Does It Work?
The drop in refinancing applications comes as the housing market has been in flux nationwide.
Borrowing costs for home loans jumped to their highest since the turn of the century last year, peaking at about 8 percent in the fall. That jump in mortgage rates was sparked by the Federal Reserve hiking rates to their highest in more than two decades as policymakers moved to tighten financial conditions to battle soaring inflation. Expectations that the central bank will start lowering those rates has helped bring mortgage rates down.
Recent data suggests that buyers are still looking for lower borrowing costs. New home sales declined in February, amid high mortgage rates that economists say depressed activity as the housing market enters its busy Spring season.
Kan said on Wednesday that still elevated mortgage rates are still keeping buyers on the sidelines.
“Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” he noted.
Kan suggest limited housing inventory is also proving to be a hindrance to the market.
“Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6-percent by the end of the year,” he said. “Similarly, with rates remaining elevated, there is very little incentive right now for rate/term refinances.”
Read more: Best Mortgage Lenders
The lock-in effect was particularly acute in the existing homes market. Most homeowners have low mortgage rates which has discouraged them from putting their properties in the market if that means they may have to acquire a new home with borrowing costs closer to 7 percent. About 90 percent of homeowners own mortgages that are under 6 percent, according to real estate platform Redfin.
There have been some signs recently that the existing homes market is recovering after struggling mightily last year.
In February, sales of previously owned homes rose by nearly 10 percent.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
LOS ANGELES — The average long-term U.S. mortgage rate rose for the fourth consecutive week, another setback for prospective homebuyers just as the spring homebuying season gets going.
The average rate on a 30-year mortgage rose to 6.94% from 6.90% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.65%. The average rate is now just below its highest level since mid-December, when it was 6.95%.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in rock-bottom rates two or three years ago from selling.
Rates have been creeping higher in recent weeks as reports showing stronger-than-expected inflation at the consumer and wholesale levels and the economy stoked worries among bond investors that the Federal Reserve will wait until later this year before it begins cutting interest rates. A closely followed inflation report on Thursday showed showed prices across the country rose pretty much as expected last month.
Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans.
Despite the recent increase, the average rate on a 30-year mortgage is still down from the 23-year high of 7.79% it reached in late October.
The pullback in rates in November and December helped lift sales of previously occupied U.S. homes by 3.1% in January versus the previous month to the strongest sales pace since August.
Still, the recent uptick in rates is an unwelcome shift for would-be homebuyers just as the spring homebuying season ramps up.
“The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying,” said Sam Khater, Freddie Mac’s chief economist. “While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines.”
Competition for relatively few homes on the market and elevated mortgage rates are limiting house hunters’ buying power on top of years of soaring prices.
Already there are signs that the rise in rates in recent weeks has had an impact on home sales.
Contract signings on U.S. homes fell 4.9% in January from the previous month and were down 8.8% from a year earlier, the National Association of Realtors said Thursday. The report is a barometer of future home purchases as there’s typically a lag of a month or two between a signed contract and a completed sale.
Meanwhile, home loan applications have declined for three consecutive weeks, according to the Mortgage Bankers Association.
Homeowners seeking to refinance got some good news this week. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, declined this week, pulling down the average rate to 6.26% from 6.29% last week. A year ago it averaged 5.89%, Freddie Mac said.
Source: abcnews.go.com
“Despite the significant decline in mortgage affordability in the past two years, millions of families who do not own their home have the means to afford the largest share of a homeowner’s cost — the mortgage,” said Zillow senior economist Orphe Divounguy. However, he emphasized that income isn’t the only obstacle. “It’s crucial to recognize … [Read more…]
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Mortgage rates have jumped above 7 percent for the first time since early December, according to one leading index.
Figures from the Mortgage Bankers Association (MBA) show the rate on a 30-year fixed-rate home loan hit 7.06 percent in the largest weekly increase since October.
Soaring rates have poured cold water on demand, with home purchase mortgage applications tumbling 10.6 percent in the week to February 16, the MBA said.
It comes as several experts are warning prospective buyers to stave off purchasing their dream home as mortgage rates are certain to come down again before the end of the year.
Several measures of inflation not cooling as fast as expected are behind rates ticking up slighly. Once these fall, rates should follow later in the year.
US mortgage rates are tracked by several different indexes including the MBA and Freddie Mac. Freddie Mac reports rates on a 30-year home loan are slightly lower at 6.77 percent.
Mortgage rates have jumped above 7 percent for the first time since early December, according to the Mortgage Bankers Association
Soaring rates have poured cold water on demand, with home purchase mortgage applications tumbling 10.6 percent in the week to February 16, the MBA said
MBA SVP and chief economist Mike Fratantoni said: ‘Potential homebuyers are quite sensitive to these rate changes, as affordability is strained with both higher rates and higher home values in this supply-constrained market.’
At today’s rate, a typical homebuyer faces paying around $1,000 per month than had they bought two years ago when rates were around 3.08 percent.
In February 2022, a buyer purchasing a $400,000 home with a 5 percent deposit would face monthly payments of $1,619. With a 7.06 percent rate, this rises to $2,543.
Mortgage rates echo moves in the 10-year Treasury yield which have been rocked by a stronger-than-expected inflation report that casts doubt on when the Federal Reserve will be able to cut interest rates.
The Fed’s benchmark funds rate is currently at a 22-year high of between 5.25 and 5.5 percent.
In theory, higher rates are supposed to reign in consumer spending and dampen inflation but prices have remained persistently high.
Investors had hoped for a rate cut during the Fed’s next meeting in March but now only 6.5 percent think this is likely, according to the CME FedWatch tool.
Realtor Sam DeBianchi, who starred on Million Dollar Listing Miami, told Fox’s Mornings with Maria prospective buyers should not ‘buy the American dream home right now’
Officials confirmed interest rates will remain at their current level of between 5.25 and 5.5 percent
However, around 75 percent agree there will be a rate cut by June.
Many real estate experts are now urging prospective buyers to wait for rates to come down.
Realtor Sam DeBianchi, who starred on Million Dollar Listing Miami, told Fox’s Mornings with Maria: ‘Because rates are so high or higher in general, people are trying to add all of the bells and whistles into their purchase, naturally, because they want to roll it all in. They want to come out of pocket too much.
‘I think, as a buyer, you need to maybe put your expectations aside. Don’t buy the American dream home right now. But, think about the American dream home in the future.’
Similarly, Melissa Cohn, regional vice president at William Raveis Mortgage, recently told Forbes that mortgage rates will be ‘at least 2 percent lower by 2025.’
Source: dailymail.co.uk
Significantly more Americans own a home now than a decade ago, but the disparity between Black homeownership rates and those of other racial and ethnic groups has grown wider, according to the National Association of Realtors.
Overall, U.S. homeownership increased over the decade to 2022, with 10.5 million more homeowners across the country, the study by the trade group found, drawing on Census data. Asian Americans experienced the sharpest increase over the period, with ownership rates soaring to a historic high of 63.3%. Hispanic Americans saw a gain of 3.2 million households, to reach a new peak of 51.1%.
While Black Americans also saw homeownership advance, the gain was modest. And at 44.1%, their rate is notably lower than that for Asian, Hispanic and White Americans. The gap between Blacks and Whites – the highest among the four major groups – widened by a percentage point from 2012, to 28 percentage points.
“Minority homeownership gained ground,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “While the gains should be celebrated, the pathway into homeownership remains arduous for minority buyers.”
The NAR’s analysis showed 55% of Asian and 51% of Black and Hispanic howe owners were first-time buyers, something that places them at a particular disadvantage in a market marked by high prices and limited supply. That’s because first-timers “must rely on down-payment sources beyond gained housing equity,” Lautz said.
Other challenges for would-be buyers of color include difficulties in saving for a down payment — as they typically spend higher proportions of their income on rent and paying back student loans.
Black homebuyers, for instance, reported the highest levels of student-loan debt among all groups, with 41% carrying a record high median debt of $46,000, while 29% of Hispanic buyers had student loan debt with a median of $33,000. The NAR has also cited data showing Black Americans draw on pension or 401(k) savings more than any other group.
Citing data from the Home Mortgage Disclosure Act, the NAR last year said Black and Hispanic homebuyers face additional barriers in securing mortgages, such as higher denial rates compared with their White and Asian counterparts.
For those who do obtain mortgages, the interest rates tend to be higher on average, Tuesday’s report showed. For loans originated in 2022, 20% for Blacks and 21% for Hispanics exceeded 6%, in contrast with lower percentages among Asian and White borrowers.
Source: nationalmortgagenews.com
The mean rate for a 15-year fixed-rate refinance moved higher this week, while 30-year fixed refinance rates trailed off. The average rate on 10-year fixed refinance increased.
Refinance rates saw some turmoil over the last week, but they’ve been slowly dropping from their peaks in 2023. Experts say slowing inflation and the Federal Reserve’s projected interest rate cuts should help push mortgage interest rates down to around 6% by the end of 2024.
Over 82% of homeowners currently have interest rates below 5% on their property. If home loan rates stabilize over the next several months, more homeowners should be able to save money through refinancing. But in order for refinance applications to pick up in a meaningful way, rates would need to fall substantially, according to Mark Zandi, chief economist at Moody’s Analytics.
Mortgage refinance rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Refinance rates are currently between 6% and 7%, but your personal interest rate will depend on your credit history, financial profile and application.
Here are the average refinance rates provided by lenders across the US. We track refinance rate trends using information collected by Bankrate:
Product | Rate | A week ago | Change |
---|---|---|---|
30-year fixed refi | 7.18% | 7.21% | -0.03 |
15-year fixed refi | 6.58% | 6.52% | +0.06 |
10-year fixed refi | 6.47% | 6.38% | +0.09 |
Rates as of Feb. 13, 2024
When mortgage rates hit historic lows during the pandemic, millions of homeowners were able to refinance to lower interest rates. While experts don’t anticipate another refinancing boom, it’s a positive sign that rates are now tending to move downward or sideways instead of soaring up.
For homeowners looking to refinance, remember that you can’t time the market: Interest rates fluctuate on an hourly, daily and weekly basis, and are influenced by an array of macroeconomic factors. Your best move is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough percentage drop, said Matt Graham of Mortgage News Daily.
When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you’ll tap into your equity with a new loan that’s bigger than your existing mortgage balance, allowing you to pocket the difference in cash.
Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it’s the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly.
Refinancing in today’s market could make sense if you have a rate above 8%, said Logan Mohtashami, lead analyst at HousingWire. “However, with all refinancing options, it’s a personal financial choice because of the cost that goes with the loan process,” Mohtashami said.
Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance:
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates.
The average rate for a 30-year fixed refinance loan is currently 7.18%, a decrease of 3 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term.
The average 15-year fixed refinance rate right now is 6.58%, an increase of 6 basis points from what we saw the previous week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.
For 10-year fixed refinances, the average rate is currently at 6.47%, an increase of 9 basis points from what we saw the previous week. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.
To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.
Source: cnet.com
In the current mortgage landscape, ensuring the highest standards of loan quality is paramount not only during the origination process but also over the life of the loan. As the mortgage industry grapples with a changing market and regulatory complexities, we sat down with Amanda Phillips, Executive Vice President of Compliance at ACES Quality Management, to discuss how lenders can foster long-term success through a robust servicing QC process.
HousingWire: What were some of the challenges faced by lenders in 2023, and what is the outlook for 2024?
Amanda Phillips: 2023 was a year of trials and tribulations for financial institutions. Mortgage applications hit their lowest level since 1996, and lenders were faced with the compounding challenges of dwindling origination volume, soaring home prices, rising interest rates and inadequate housing inventory.
Thankfully, the tune of the housing industry has changed over the last few weeks. Analysts predict 2024 will bring a rise in mortgage origination volume and, potentially, several cuts to interest rate. While the challenge of low housing inventory persists across the country, I have a feeling loan officers will be busier. While the industry basks in the much-needed optimism for 2024, one thing is for certain, quality control (QC) and compliance are still important and worthy of lenders’ attention. An uptick in origination volume tends to bring an uptick in QC defects.
HW: Why is quality control (QC) crucial for lenders in the mortgage industry, and how can lenders maintain QC effectively?
AP: QC is crucial for lenders to ensure loan quality and mitigate risk. A well-rounded QC program can catch loan defects before regulators arrive for exam or investors send loans back for re-purchase. Operational capacity and the staggering cost to originate are challenges lenders will continue to face, leading many lenders to offset this hurdle by maintaining mortgage servicing rights (MSR). To maintain profitability through MSR, lenders also needa robust servicing QC program.
Maintaining QC begins with regularly assessing the integrity of both servicing portfolios and staff to ensure they adhere to all relevant servicing rules, guidelines and regulations. Fortunately, QC is a crucial area where lenders can see immediate returns from easy-to-implement audit and compliance technology. Lenders are advised to regularly review and update operational/compliance procedures and quality control frameworks, conduct self-assessments to test those updates, and, of course, remediate findings.
To mitigate and manage inherent servicing risks, your risk management team must identify your institution’s specific risk areas. From there, your internal audit team should ensure the proper processes and procedures are in place to address those risks. Subsequently, the QC team is responsible for verifying, from a transactional perspective, that your organization aligns its actions with its declarations and takes necessary measures regarding associated risks. Traditional methods, such as manual tracking and spreadsheets, make this process all the more prone to mistakes. This is why utilizing audit technology is so powerful; mistakes are significantly reduced, and efficiencies gained through less manual entry needed from the QC team.
The CFPB’s priorities signal the importance of self-assessment and remediation. Dot your I’s and cross your T’s with a paper trail. Lenders should review their in-house practices to ensure they meet the standard and compare with the recommendations from regulators.
HW: What role does the Consumer Financial Protection Bureau (CFPB) play in the mortgage servicing landscape, especially concerning compliance with the CARES Act and servicing regulations?
AP: The CFPB continues to emphasize compliance with the CARES Act and other servicing regulations, particularly in areas like fair lending, fair servicing, and forbearance. Over the last several years, they have clearly stated the priorities of fair lending and achieving equitable and fair housing programs. The CFPB has actively stated that strictly relying on artificial intelligence (AI) and automated complex credit models will not be tolerated. If a borrower was denied, the lender needs to be able to accurately speak to and explain why and how the decision was made.
This is just another area of how implementing a robust QC process can help lenders avoid these regulatory pitfalls. With audit technology, lenders will have this process documented and ready to pull up in the event of a regulatory audit or discrepancy.
HW: What steps should servicers take to identify and manage inherent servicing risks?
AP: Servicers should identify specific risk areas, establish proper processes, and conduct audits against policies and procedures. An example of a process improvement could be a Call Monitoring program. Consumer telephone interactions are an essential aspect of servicing that is easy to overlook from a quality perspective. No matter how many controls are in place, the need for human interaction, especially as it relates to collections and loss mitigation efforts, can result in an increased risk of non-compliance. Lenders can leverage a robust Call Monitoring program to identify where improvements are needed to protect the organization from regulatory and reputational risk. ACES Quality Management has a pre-built, configurable Call Monitoring audit pack that enables servicers to establish an additional layer of protection quickly and seamlessly within your QC program.
As financial institutions navigate the intricate web of compliance requirements and market fluctuations, ACES not only enables adherence to regulatory standards but it elevates the entire loan quality paradigm. By fostering a culture of continuous improvement while equipping professionals with powerful data-driven insights, ACES becomes an invaluable ally in mitigating risks and enhancing operational efficiency.
The significance of robust quality control and management in the mortgage sector cannot be overstated. In an environment where precision and compliance are non-negotiable, ACES stands as a testament to innovation and adaptability. For more tactical ways to improve QC, download ACES’ free playbook: Three Lines of Defense for Maintaining Servicing Loan Quality.
Source: housingwire.com
Both 15-year fixed and 30-year fixed refinances saw their average rates increase this week. The average rate on 10-year fixed refinance also inched up.
Despite ticking up in recent weeks, refinance rates have been slowly dropping from their peaks in 2023, bringing much-needed activity to the housing market. Experts say slowing inflation and the Federal Reserve’s projected interest rate cuts should help push mortgage interest rates down to around 6% by the end of 2024.
Over 82% of homeowners currently have interest rates below 5% on their property. If home loan rates stabilize over the next several months, more homeowners should be able to save money through refinancing. But in order for refinance applications to pick up in a meaningful way, rates would need to fall substantially, according to Mark Zandi, chief economist at Moody’s Analytics.
Mortgage refinance rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Refinance rates are currently between 6% and 7%, but your personal interest rate will depend on your credit history, financial profile and application.
Here are the average refinance rates reported by lenders nationwide. We track refinance rate trends using data collected by Bankrate:
Product | Rate | A week ago | Change |
---|---|---|---|
30-year fixed refi | 7.21% | 7.03% | +0.18 |
15-year fixed refi | 6.56% | 6.22% | +0.34 |
10-year fixed refi | 6.43% | 6.04% | +0.39 |
Rates as of Feb. 9, 2024
When mortgage rates hit historic lows during the pandemic, millions of homeowners were able to refinance to lower interest rates. While experts don’t anticipate another refinancing boom, it’s a positive sign that rates are now tending to move downward or sideways instead of soaring up.
For homeowners looking to refinance, remember that you can’t time the market: Interest rates fluctuate on an hourly, daily and weekly basis, and are influenced by an array of macroeconomic factors. Your best move is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough percentage drop, said Matt Graham of Mortgage News Daily.
When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you’ll tap into your equity with a new loan that’s bigger than your existing mortgage balance, allowing you to pocket the difference in cash.
Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it’s the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly.
Refinancing in today’s market could make sense if you have a rate above 8%, said Logan Mohtashami, lead analyst at HousingWire. “However, with all refinancing options, it’s a personal financial choice because of the cost that goes with the loan process,” Mohtashami said.
Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance:
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates.
The average 30-year fixed refinance rate right now is 7.21%, an increase of 18 basis points over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term.
The current average interest rate for 15-year refinances is 6.56%, an increase of 34 basis points compared to one week ago. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.
For 10-year fixed refinances, the average rate is currently at 6.43%, an increase of 39 basis points from what we saw the previous week. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.
To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.
Source: cnet.com