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Mortgage Rates Experience Daily Fluctuations, Credible Offers Comparison Tool

Mortgage rates continue to exhibit daily fluctuations, with the interest rate on a 30-year fixed-rate mortgage standing at 6.875% as of December 5, marking a 0.250 percentage points increase from the previous day. Similarly, the interest rate on a 15-year fixed-rate mortgage is now 6.375%, reflecting a 0.500 percentage points rise from the previous day’s rate.

Given the dynamic nature of mortgage rates, potential homebuyers are advised to check the current rates before applying for a loan. Credible, a personal finance marketplace, provides a platform for users to compare different lenders’ interest rates, terms, and fees to secure the most favorable deal. As of December 5, 2023, Credible reports an average rating of 4.7 out of 5.0 on Trustpilot, with over 5,000 reviews.

Understanding mortgage interest rates is crucial for borrowers. The interest rate, expressed as a percentage, represents the cost of borrowing money. It can vary based on various factors, including credit score, debt-to-income ratio, down payment, loan amount, and repayment term. Borrowers typically receive an amortization schedule after obtaining a mortgage, illustrating the payment schedule over the loan’s life.

Mortgage interest rates can be either fixed or adjustable. Fixed-rate mortgages maintain a consistent rate throughout the loan duration, while adjustable-rate mortgages (ARM) allow the interest rate to fluctuate with the market.

The current average mortgage rates are influenced by factors such as inflation, economic climate, demand, and inventory. In times of high inflation, interest rates tend to rise, while periods of low inflation may see rates drop or remain stable.

To secure favorable mortgage rates, platforms like Credible provide a convenient way to compare rates from multiple lenders without impacting credit scores. Lenders determine interest rates on a case-by-case basis, reserving the lowest rates for low-risk borrowers with higher credit scores, income, and down payment amounts.

When considering mortgage rates, it’s essential to distinguish between the interest rate and the annual percentage rate (APR). The APR encompasses both the interest rate and additional lender fees or charges.

Mortgage refinancing is a strategy to trade the current loan for a new one, potentially achieving a lower interest rate. The refinancing process is similar to obtaining the original loan and can be beneficial for reducing monthly payments and overall loan costs.

Understanding key concepts like rate locks, mortgage points, closing costs, and the benefits and downsides of mortgages is crucial for borrowers. Credible’s online tools, including a mortgage calculator, facilitate the comparison of rates, monthly payments, and total loan costs.

In summary, staying informed about the dynamic nature of mortgage rates and utilizing platforms like Credible can empower potential homebuyers to make well-informed decisions when navigating the complex landscape of mortgage financing.

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