Today’s Mortgage, Refinance Rates: March 5, 2022

Though mortgage rates are expected to increase throughout 2022 from their historic pandemic lows, Russia’s invasion of Ukraine has created uncertainty in the markets, leading to some



“The swings over the past few days are reminiscent of the February and March leading up to the COVID shutdowns in 2020 and represent some of the most volatile weeks in recent history,”  says Robert Heck, vice president of mortgage at Morty.

Even though we saw some dips this week, rates likely will continue to increase in March and beyond, so it may be a good time for homebuyers to start shopping around and lock in a rate.

Today’s mortgage rates

Today’s refinance rates

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

Your estimated monthly payment

  • 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.

Is it a good time to buy a house?

The US is a seller’s market right now, meaning there are more buyers than there are homes for sale. Homes are expensive as a result, and bidding wars are competitive. If you don’t have enough money for a down payment on a home you like, it might not be the best time to buy a home.

For homebuyers, it’s definitely not a time to panic or make any rushed decisions, but the sooner in the process you start tracking your overall mortgage costs and how they might change with the market, the better. Robert Heck, vice president of mortgage at Morty

But if you’re financially ready to make a down payment and cover closing costs, it could still be a good time to buy. Mortgage rates have risen — but rates aren’t necessarily high enough to affect your decision.

“For homebuyers, it’s definitely not a time to panic or make any rushed decisions, but the sooner in the process you start tracking your overall mortgage costs and how they might change with the market, the better,” Heck says. “The crisis in Ukraine has introduced more uncertainty, and inflation remains persistent. But those looking and purchasing a home should consider their overall financial situation and evaluate their home-buying needs beyond short-term interest rate movements.”

Is now a good time to refinance?

It depends on your situation — but in general, yes, this is a good time to refinance your mortgage. Refinance rates are relatively low, but they’ll probably keep inching upward this year. If you can lock in a significantly lower rate by refinancing, you may want to do so.

Keep in mind that refinancing will probably only be worth the effort if you plan to stay on the home for at least a few more years. You’ll pay closing costs when you refinance, so you want to stay in the home long enough that the amount you’ll save in interest exceeds the amount you pay at closing. Otherwise, you could lose money by refinancing.

How do I get the lowest refinance rate?

Securing the lowest refinance rate possible breaks down into three main categories:

  • Home equity: Most lenders require you to have at least 20% equity in your home to refinance — but if you have even more equity, you could be rewarded with a lower rate. You can find ways to either increase your home’s value (like with home improvements) or make extra payments to have more equity in your house.
  • Credit score: The higher your credit score, the lower your interest rate could be. Check your credit report or use a free website like Credit Karma to see what needs improving for your score to go up.
  • Debt-to-income ratio: Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Most refinance lenders want to see a DTI ratio of 36% or less, but the lower your ratio, the better your rate will be. You can either find ways to earn more money or pay down debts to decrease your ratio.

Improving in these three categories will help you land the best refinance rate, which could lead to a great time to refinance your mortgage.

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