Today’s Mortgage and Refinance Rates: August 16, 2021


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Mortgage and refinance rates have held pretty steady for weeks, and today is no exception. A good example of this is average rates for a 30-year fixed mortgage, which have been at 3.30% for the past month.

Mortgage rates will probably stay low for at least a few more months, so you don’t need to rush to take advantage of today’s low rates if you aren’t prepared. But if you are ready to buy or refinance, shop around for lenders to compare their rates.

Ask each lender for a loan estimate. This is an itemized list of fees that helps you compare what you’ll pay from lender to lender. Ideally, you’d choose a lender that charges both a relatively low rate and low fees.

Mortgage rates on Monday, August, 16 2021

Conventional rates from Money.com; government-backed rates from RedVentures.

Learn more and get offers from multiple lenders »

Rates for conventional mortgages, which you may think of as “regular mortgages,” are currently low. But you can usually get an even better rate with a government-backed mortgage through the FHA or VA, depending on which term length you want. Government mortgages are good options if you’re eligible.

Refinance rates on Monday, August 16, 2021

Conventional rates from Money.com; government-backed rates from RedVentures.

Compare offers from refinancing lenders »

Adjustable refinance rates are significantly higher than fixed or government-backed refinance rates.

How to get a low mortgage rate

Mortgage rates are at all-time lows, so it could be a good day to lock in a rate — especially if you know you want to buy soon.

But rates will probably stay low for a while, so you don’t necessarily need to rush to take advantage of low rates if you aren’t quite ready yet. You have time to boost your financial profile, which could help you get an even better rate.

To get the best possible rate, consider these steps before applying:  

  • Increase your credit score by making payments on time, paying down debt, or letting your credit age. The higher your score, the better.
  • Save more for a down paymentThe minimum down payment you’ll need depends on which type of mortgage you are after. But if you can make more than the minimum down payment, you’ll probably be rewarded with a higher rate.
  • Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want your ratio to be 36% or lower. To improve your ratio, pay down debts or look for ways to increase your income. 

You can secure a low rate now if your finances are in good shape, but you don’t need to rush to get a mortgage or refinance if you’re not prepared.

Mortgage rate trends

Refinance rate trends

15-year fixed-rate mortgages

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Today’s Mortgage and Refinance Rates: August 16, 2021

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