Offset Rising Mortgage Rates
It’s no secret, mortgage rates have been on the rise across the united states. By the end of the year, the Mortgage Bankers Association predicts that rates could be as high as 6-7%. In April, Freddie Mac predicted that a 30-year fixed mortgage rate would average at about 5% for full-year 2022.
While these rates won’t skyrocket abruptly, it’s still wise to be prepared one how you can offset them.
So, what can home buyers and homeowners who are interested in refinancing due to offset these rising rates? Here are some strategies to keep in mind:
- Improve your credit score. In most cases, borrowers whose credit scores are at least 760, experience a lower mortgage rate.
- Make a larger down payment. If you increase your down payment, it lowers the amount borrowed and the amount of your monthly payment.
- Buy down the rate. If you pay discount points, this could lower the interest rate for the life of the loan.
- Shop around. Not all lenders will carry the same loans, so do your research and shop around.
- Lock in your interest rate. To make sure that your rate doesn’t rise during the loan process, lock it in during the transaction.
- Reduce your loan term. Mortgage rates for 15-year loans are typically lower than the rates of 20- or 30-year loans.
- Refinance your loan. If there’s a one or two percent difference in the rate of a loan, it may be smart to refinance.
Get Ahead of Rising Rates
Use these financing tips to offset rising mortgage rates and finance your home in a way that makes sense for you and your budget. Let’s make a game plan and put it to action. If you’re ready to buy or sell in Central Oregon, allow our 55 years of local experience to guide on this life-changing path. Our team of excellent brokers are here to serve you, with Duke Warner you’re family.