Save Money With the Best Local Mortgage Rates
Lock-in Low Rates Today & Save Throughout the Duration of Your Loan
This page enables you to quickly view the best local mortgage rates. By default the table is set to display refinance rates. Click on the purchase tab within the table to view purchase rates. You can select different loan options from within the [Product] menu. And if you want to see all in payments on your loan with taxes & other aspects baked in, click on the [Calculate] tab which is next to the [current rates] tab. You can repeatedly switch between these tabs to figure your payments and see which loan options best suit your needs.
What Loans Are Most Popular?
Fixed vs Adjustable Rates
- Fixed-rate mortgages guarantee a borrower a set interest rate & monthly payment throughout the duration of the loan.
- Adjustable-rate mortgages are typically structured as hybrid loans, where consumers have access to a low introductory rate for a set number of years (usually 3, 5 or 7) and then the rate floats throughout the duration of the loan based on a benchmark rate like LIBOR.
Most home buyers across the United States opt for fixed-rate mortgages. If one has an FRM they still have the ability to refi if rates fall further, but they are not exposed to the risk of rising rates.
ARMs grow in popularity when interest rates are high & rising, but do not offer most home buyers a compelling risk/reward ratio when fixed rates are as low as they currently are.
Across the United States about 88% of home buyers finance their purchase. Of those buyers, around 90% of them opt for a 30-year fixed rate mortgage. The next popular loan product is the 15-year FRM. It has close to a 6% marketshare. Among first-time homebuyers the 15-year is not widely used but is a somewhat common choice among people refinancing their homes. 10-year and 20-year loan options also exist, though they are not widely used currently.
Jumbo vs Conforming Loan Classification
Most mortgages issued across the United States are called conventional, conforming mortgages. The benchmark downpayment is 20%, though most consumers typically have less than that to put down, and are thus required to pay property mortgage insurance (PMI) as part of their home loan payment until the they have at least 20% equity built in their home.
Loans which are above the conforming limit of $424,100 (or up to $636,150 in designated high-cost areas) are classified as jumbo loans. Jumbo loans can be structured as ARMs or FRMs. The primary difference between a jumbo loan and a conventional mortgage is simply the amount financed.
Government-sponsored Mortgage Types
Other popular mortgage options include VA loans for veterans, USDA loans for low-income rural buyers, and the FHA loan program.
- FHA loans are available to people with lower credit scores and only require a 3.5% downpayment. FHA loans have something similar to PMI called MPI which must be paid throughout the duration of the loan. The limited downpayment requirement coupled with looser credit standards make FHA loans an appealing option for first-time buyers. However, the MPI which lasts for the life of the loan, is one reason many borrowers start with an FHA loan and then later refinance into a conventional loan when they have improved their credit scores and have built up significant equity in their homes. FHA loans typically hover around 12% to 18% of the overall market.
- VA loans cater to veterans as a benefit for their service to the country. These loans do not require a downpayment, though the loans come with a funding fee that can be rolled into the loan. VA loans typically make up about 8% to 10% of the market.
- USDA loans cater to lower income rural Americans. The program has an income cap of 115% of local median income. People with a credit score under 580 get more scrutiny in qualifying for loans than people with high credit scores. USDA loans make up something like a percent or two of the market.
Some states may also have local loan programs which aim to assist low-income individuals.