To get the best mortgage rates, make sure your credit is in good standing before you apply. Getty Images/iStockphoto
If you're looking for a new home or considering refinancing your current mortgage, you may be facing some challenges. With high mortgage interest rates and limited housing inventory, finding affordable options can be tough. But it's not impossible, especially if you have a good credit score and an excellent overall application.
Of course, if you're looking to buy a new home or considering refinancing your home, it's important to know what mortgage interest rates to expect. We've listed the current average mortgage and refinance interest rates below.
Start here and compare the best mortgage rates available today.
What are mortgage and mortgage refinance rates today?
The interest rates below are based on national averages collected by Bankrate and are current as of June 28, 2024. While these are averages based on national data, the actual rate you receive may vary depending on your location, credit, loan type, and other factors.
Today's average mortgage rates:
15-year mortgage: 6.47%30-year mortgage: 7.00%
Average refinance rates today:
15-year refinance: 6.53%30-year refinance: 6.99%
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How to get great mortgage and refinance rates now
While interest rates are higher than they were a few years ago, new homebuyers and existing homeowners looking to refinance can still get good rates right now. Plus, borrowers could get some immediate relief if the Fed decides to pause rate hikes after its July hike.
“As the Fed has been raising interest rates over the past two years, borrowing costs have risen,” said Taylor Jesse, CFP, founder of Impact Financial. “For example, in 2020, mortgage rates could easily be pegged between 2% and 3%. Now, mortgage rates are closer to 6% to 7%. Once the Fed stops raising rates, we expect mortgage rates to stop rising, which is good news for borrowers.”
While the macro interest rate environment is working in your favor, there are some things you can do to improve your chances of getting a favorable interest rate.
Perhaps most importantly, start by strengthening your credit profile. The Consumer Financial Protection Bureau's website states, “Borrowers with credit scores in the mid- to high-700s or higher qualify for the best interest rates. These borrowers also typically have the most options available.”
Pay your bills in full and on time each month, check your credit report for errors, and avoid applying for other loans or credit cards too close to your mortgage or refinance application.
You should also compare different lenders. Don't be afraid to look beyond your current mortgage lender, especially if you're refinancing. You may be subject to different interest rates and terms, which can make a big difference in the amount you pay over the life of your loan.
Find the best mortgage refinance rates available to you here today.
Things to be aware of when refinancing your home loan
One of the first things to consider when choosing a mortgage or refinance is the loan term you want. A shorter term (a 15-year loan) typically offers a lower interest rate than a longer term (a 30-year loan).
Fees are another detail to factor into your overall payment amount. Fees vary depending on the type of loan and the closing costs the lender charges. Both fees and interest rates can affect your monthly payment. Before taking out a new loan, calculate your monthly payment to see if you can afford it.
If you're refinancing, make sure you compare all the details of your approved new loan with your existing mortgage. Even if your interest rate has decreased, other factors (like closing costs) could end up costing you more in the long run.
And once you've decided, don't forget to lock in your mortgage interest rate so that rates don't rise again until you've actually closed on the home.
Conclusion
Mortgage interest rates are higher than they were a few years ago, but there are still many good options for both new homebuyers and existing homeowners looking to refinance. Top interest rates for both types of mortgages can still be as low as 6% today, but it's still important to compare a few different lenders to see the best rate and loan terms you can qualify for before locking in an interest rate. Also, be sure to calculate your overall costs and payments so you're ready to start paying off your new loan.
Ready to get a new mortgage? Find out the best rates you can get here today!