Mortgage and Refinance Rates Today: January 7, 2022


Mortgage rates remain low today, although fixed rates have been rising gradually for 30 years. Floating rates have been going down in recent months, making them more competitive with fixed rates than they used to be. When applying for a mortgage or refinancing, you may want to consider both fixed and floating rate options.

Since the variable interest rates have decreased, the fixed interest rates have increased slightly in the last few months. Here are the trends in fixed and adjustable interest rates over the past 12 months according to data from Freddie Mac:

Adjustable rates used to be higher than 30 year fixed rates in 2021, but now they are lower and 30 year fixed rates are increasing. However, the fixed rates are still low overall, and you can choose a low rate for the life of your loan instead of risking your interest rate rising later.

Mortgage Rates Today

Mortgage Refinance Rates Today

Mortgage calculator

You can enter the current mortgage rates into our free mortgage calculator to see how different rates affect your monthly payments.

Mortgage calculator

Your estimated monthly payment

  • Pay 25% higher deposit would save you $ 8,916.08 on interest costs
  • Lower the interest rate by 1% would save you $ 51,562.03
  • Pay the surcharge $ 500 the repayment term would increase every month 146 months

You can enter the current mortgage rates into our free mortgage calculator to see how different rates affect your monthly payments.

How do mortgage rates work?

A mortgage rate is the fee a lender charges on borrowing, expressed as a percentage. For example, you might get a $ 200,000 mortgage at a rate of 2.75%.

Mortgage rates can be either fixed or variable. With a fixed-rate mortgage, your interest rate stays the same over the life of your loan. A variable rate mortgage will lock your interest rate for the first few years or so and then change it regularly. With a 7/1 ARM, your rate would stay constant for the first seven years and then shift annually.

The longer your mortgage term, the higher your interest rate. For example, you pay more for a 30 year mortgage than you would pay for a 15 year mortgage. However, longer terms come with lower monthly payments because you split the repayment process.

How do I get the best mortgage rate?

Here are some steps you can take to get the lowest mortgage rate:

  • Look at fixed vs. adjustable rates. You may be able to get a lower introductory rate with a variable rate mortgage, which can be good if you want to move before the introductory period is over. But a fixed price might be better if you buy a home forever because you don’t risk your price going up later. Take a look at your lender’s rates and weigh your options.
  • Look at your finances. The better your financial situation, the lower your mortgage rate should be. Look for ways to improve your credit score or lower your debt-to-income ratio, if necessary. Saving for a higher down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the right one for your financial situation will help you get a great price.


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