Current 30-year fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.Potential homebuyers who waited patiently through 2023’s mostly rising interest rates will be glad to hear that our senior economist Jacob Channel doesn’t expect rates to continue that same trajectory throughout 2024. The current mortgage rates forecast is for rates to spend most of the year between 6% and 7%, and end the year closer to the low end of that range.
No matter what rates do, however, homebuyers will almost certainly still have to deal with very high home prices. The housing affordability crisis won’t be solved in a single year, but if rates drop low enough to entice existing homebuyers to sell, it could help matters. The market is in dire need of housing stock, so adding to the housing supply could help move the needle in the right direction.
There are many factors determining mortgage rates that are out of your control, but here are a few steps you can take to get the best mortgage rate:
When should I lock in my mortgage rate?Once you’ve found a house you want to buy and a lender has approved you for a loan, you can request a mortgage rate lock. The lock is only good for a set amount of time, and only applies to that specific home. But what it does is essential — by keeping your interest rate safe and “locked in,” it gives you a window of time in which you can reach the closing table without worrying about what the market is doing.
First-time homebuyers who qualify for a 30-year conventional, FHA, VA or USDA loan through this program from the Delaware State Housing Authority (DSHA) can receive a below-market interest rate. The loans can also be combined with one of DSHA’s several down payment assistance programs, which we’ll cover below.
Borrowers must:
Have a minimum 620 credit score
Earn within the program’s income limits, which range from $97,700 to $156,240 depending on your location and household size
Purchase a home within the program’s limits, which are:
People who have never owned a home
People who haven’t owned real estate in the last three years
If you’re a repeat buyer, or your income is too high to qualify for the Welcome Home program, Home Again may be right for you.
Borrowers must:
Have a minimum 620 credit score
Earn within the program’s income limits, which range from $117,240 to $171,240 depending on your location and household size
Purchase a home within the program’s limits, which are:
Complete a credit counseling course if their credit score is between 620 and 659
Home Sweet Home is one of DSHA’s down payment assistance programs, and can be used with either a Welcome Home or Home Again loan. The program provides $12,000 for a down payment or closing costs and is forgivable. In other words, you won’t have to pay the money back as long as you stay in the home for 10 years.
Borrowers must:
Purchase a home for no more than $285,000
Use the program in conjunction with a DSHA purchase mortgage loan
This is the other major down payment assistance program DSHA offers. Instead of qualifying for a flat amount, borrowers can qualify for up to 3% of their mortgage amount in assistance funds. In some cases, that means you may qualify for more money than you could with the Home Sweet Home program. However, you’ll have to make monthly interest payments and, ultimately, repay the loan if you move out of the home, refinance it or sell it.
Borrowers must:
Use the program in conjunction with a DSHA purchase mortgage loan
→ Delaware conventional loans. You’re probably familiar with conventional loans — they’re a standard choice for homebuyers with good credit. You’ll need at least a 620 score to meet the minimum requirements set by Fannie Mae and Freddie Mac.
→ Delaware FHA loans. FHA loan requirements give more leeway to borrowers than conventional loan requirements do. It’s possible to qualify with a score as low as 500, but you’ll need to make a 10% down payment. If your score is 580 or above, however, you can put down as little as 3.5%.
→ Delaware VA loans. VA loan requirements don’t come with a universal minimum credit score, which means that — unlike with conventional or FHA loans — you can shop around to find a lender whose credit score guidelines meet your needs. VA loans are only available to military borrowers with a qualified service history.
→ Delaware streamline refinances can be a very convenient option for borrowers looking to refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan. Depending on your current loan, you’ll use an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL). They’re known as “streamline” refinances because they don’t require as much documentation or time to complete as most standard refinances.
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