What Are Today’s Mortgage Rates?
Looking for today’s mortgage rates? Get a real rate quote by talking to a Gulf Coast Bank Home Loans lender near you in New Orleans, Metairie, Baton Rouge, the Northshore, Texas or Florida.
Much like the real estate market on the Gulf Coast, daily mortgage rates change quickly. You can try to predict them by following rate fluctuations and reading up regularly on the outlook of the U.S. economy. However, there are other factors which impact the rate you’re offered when you apply for a home loan. These factors are unique to you as a borrower.
The need for a personalized rate quote is why popular daily mortgage rate tickers are best used simply as tools for surveying mortgage interest rate ranges. In order to get an accurate rate quote you can trust, it’s best to get pre-qualified and get rate options for your specific financial situation.
We’re the bank that cares about you, and we want to help simplify the complicated nature of mortgage rates. Read on to learn more about:
- Factors that can and can’t be controlled when it comes to mortgage rates
- How to accurately determine today’s mortgage rate as it applies to you
- How you can lock in the best mortgage rate for your unique financial scenario
What are Today’s Mortgage Rates?
These are the golden questions on every future and current homeowner’s mind:
- What are today’s mortgage rates?
- How do I get the lowest rate?
Well, it’s just not that simple. We wish it were!
There are many factors that determine lender mortgage rates. Some can be controlled and some can’t.
How Mortgage Rates Fluctuate with the Economy
In general, mortgage rates fluctuate based on the outlook of the economy.
Stock market gains and losses, rising and falling unemployment, increases or decreases in consumer confidence, inflation, the Federal Reserve, U.S. Treasury Bonds, and yes, even a pandemic, all contribute to rising or falling rates.
For example, mortgage rates usually fall when the economy slows down, as it has recently with the onset of COVID-19.
Rates usually rise with a strong economy, job growth, higher consumer confidence, higher inflation, better yields on Treasury Bonds, as well as supply & demand.
These economic factors and their effect on rates really can’t be controlled by you or anyone else for that matter. These are static factors that will impact lender mortgage rates no matter what you or your bank does.
But there are some things you can control.
How Your Mortgage Rate Fluctuates with Your Financial Health
While you may not have control over the economy’s effect on rates, certain personal financial factors do guide the mortgage rate you’re offered as a borrower when you apply for a loan.
Factors you can control when it comes to getting the lowest mortgage rate possible include:
- Your credit score
- The type of loan program you choose
- The type of property you’re buying
- Your down payment and resulting loan to value
A higher credit score means you may be eligible for a lower mortgage rate, and vice versa.
Your Down Payment – which is your mortgage amount compared to the price or value of the home you’re looking to buy – can either push your rate up (higher LTV) or down (lower LTV).
Rates also fluctuate based on your loan program (fixed or adjustable? VA, FHA, etc.), loan term , and type of property. Higher rates may apply for jumbo properties, condos, investment, and multi-unitproperties..
These fluctuations based on your personal financial factors all dictate your lender’s level of risk. Keep these factors in mind the next time you scan a mortgage rate page ticker as they may not tell the entire story.
How Do You Find the Best Mortgage Rates?
To get the best and most accurate mortgage rate when you’re ready to buy a home, it’s best to start by getting pre-qualified. Think of this as a prerequisite to locking in your mortgage terms. You can connect with a loan officer and discuss the specifics.
During the pre-qualification process, you’ll want to:
- Work with a loan officer to choose the right loan program for your situation
- Have credit score reviewed
- Compare multiple loan options with adjustments – including figuring in features like added discount points that can reduce your interest rate, down payment options to avoid Private Mortgage Insurance (PMI), and certain loan programs for military Veterans
The only sure way to gauge and understand the loan interest rate you’re eligible for is to go through the pre-qualification process.
Why Do Rates Vary By Different Programs?
Rates are driven by your qualification as a borrower, the type of loan program you’re working with, and the fees involved. When it comes to risk, borrowers with lower credit scores and higher LTV’s may expect to pay a slightly higher interest rate. Different mortgage loan programs and terms also tend to have different rates. Generally, the longer the loan term, the higher the rate.
Loan fees also play a role in comparing the real cost of financing a home loan. Annual Percentage Rates (APRs) usually figure in:
- Your Mortgage Discount Points If Applicable
- A Lender’s Loan Origination Fees
- Attorney and Notary Fees
- Document Preparation Fees
- Private Mortgage Insurance If Applicable
As a rule of thumb, when shopping for home loans, the APR is the best comparison point to use when comparing loan programs across different lenders.
Find Out What Today’s REAL Interest Rates Are
The only tried-and-true way to find what today’s actual interest rate/APR is – as it applies to your financial scenario – is to get pre-qualified through your lender. It’s best not to rely on mortgage rate ticker pages for an accurate assessment of what your interest would be if you took out a home loan today. There are too many variables to account for in figuring out the final rate offered to you. That’s why it’s best to reach out to a loan officer.
Ready to Find Out Your Personalized Mortgage Rate?
If you want to get prequalified ahead of your house-hunt (you’ll be in a better position if you do!), reach out to one of our loan officers in your neighborhood. We’ll work with you to get you pre-qualified, discuss the loan program that’s right for you, and give you an accurate interest rate/APR quote. We’re the bank that cares about you and we want to help you find the right loan program – and get the most accurate rate/APR info – for your needs.