Mortgage Rates on the Rise: What You Can Do to Get the Best Deal
As the economic outlook for Q1 2025 remains uncertain, mortgage rates continue to climb. The national average 30-year fixed mortgage rate has jumped to 6.78%, while the 15-year fixed interest rate has increased to 6.07%. With rates expected to remain high, it’s essential to take proactive steps to secure the lowest interest rate possible.
Improve Your Finances to Get a Better Rate
To increase your chances of getting a lower mortgage rate, focus on improving your financial health. This includes:
- Boosting your credit score
- Paying down debts
- Saving more for a down payment
Shop Around for the Best Mortgage Lender
Don’t settle for the first mortgage lender you come across. Shop around and compare rates, fees, and terms from multiple lenders. Look for a lender that offers the type of mortgage loan you want, competitive rates, and low fees.
Understanding Mortgage Rates and Terms
When navigating the world of mortgage rates, it’s essential to understand the different types of mortgages available. These include:
- Fixed-rate mortgages, which lock in your rate for the entire life of your loan
- Adjustable-rate mortgages, which offer a lower initial rate that may change over time
The Importance of APR
When comparing mortgage lenders, don’t just look at the interest rate. Consider the mortgage annual percentage rate (APR), which factors in the interest rate, discount points, and fees. The APR provides a more accurate picture of the true annual cost of borrowing money.
Current Mortgage Rates
Here are the current mortgage rates, according to the latest data:
- 30-year fixed: 6.78%
- 20-year fixed: 6.55%
- 15-year fixed: 6.07%
- 5/1 ARM: 7.16%
- 7/1 ARM: 7.08%
- 30-year VA: 6.20%
- 15-year VA: 5.68%
- 5/1 VA: 6.36%
Refinance Mortgage Rates
If you’re considering refinancing your mortgage, here are the current rates:
- 30-year fixed: 6.84%
- 20-year fixed: 6.66%
- 15-year fixed: 6.15%
- 5/1 ARM: 7.50%
- 7/1 ARM: 7.44%
- 30-year VA: 6.13%
- 15-year VA: 5.86%
- 5/1 VA: 6.05%
Take Control of Your Mortgage Rate
In today’s high-rate environment, it’s crucial to take proactive steps to secure the lowest interest rate possible. By improving your finances, shopping around for the best mortgage lender, and understanding mortgage rates and terms, you can take control of your mortgage rate and save thousands of dollars over the life of your loan.
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