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.The current mortgage rates forecast is relatively bright: Rates aren’t expected to rise significantly in the near future, and our market expert thinks that 30-year rates could end the year closer to 6% — and perhaps even lower.
Rates marched upwards steadily for most of 2023, helping to put home affordability at a low point we haven’t seen since the 1980s. However, with the Federal Reserve signaling that its most recent cycle of rate hikes may be coming to an end in 2024, market-watchers and investors are feeling more hopeful. Potential homebuyers, too, can afford to be cautiously optimistic — if inflation continues to ease and interest rates remain where they are (or go even lower), the housing market will have a chance to bounce back.
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 you apply for a mortgage, you’ll receive a loan estimate within three business days. Once you’ve reviewed your options and feel good about an offer, you can request a mortgage rate lock. This “locks” your interest rate in place, so it can’t increase in the time it takes for you to get approved for and close on your loan.
The Maryland Department of Housing and Community Development (DHCD) runs several programs, known as Maryland Mortgage Program (MMP) loans, designed to help first-time homebuyers achieve homeownership. However, these programs also allow those who aren’t first-time homebuyers to participate if they live in a targeted area.
People who have never owned a home
People who haven’t owned real estate in the last three years
Areas designated as “targeted” by the DHCD are highlighted in pink polka dots on this map.
The First Time Advantage Direct program gives borrowers access to the lowest interest rates offered by any MMP loan. Plus, while it doesn’t offer down payment assistance, it does allow you to use down payment assistance from another organization. All First Time Advantage Direct loans are 30-year, fixed-rate loans.
Borrowers must:
Use an approved lender
Make no more than the annual income limits, which vary by location and household size
Hold no more than 19% of the home price in liquid assets (there may be some exceptions)
The First Time Advantage 6000 program gives borrowers $6,000 to supplement their down payment funds or pay closing costs. The funds come as a zero-interest second mortgage, and no payments are due until the loan is paid off or the home is sold.
Borrowers must:
Use an approved lender
Make no more than the annual income limits, which vary by location and household size
Hold no more than 19% of the home price in liquid assets
The Home Start program offers down payment assistance to low-income borrowers. The funds come in the form of a second mortgage and don’t have to be paid back until the home is paid off, refinanced or sold. The second mortgage must be for exactly 6% of the first mortgage loan amount and can be used toward the down payment or closing costs. If 6% of the first mortgage is more than enough to cover those costs, the remaining funds can be used to reduce the principal balance.
Borrowers must:
Use an MMP first mortgage loan to purchase the home
Earn no more than 50% of the area median income
Use an approved lender
Make no more than the annual income limits, which vary by location and household size
Hold no more than 19% of the home price in liquid assets (there may be some exceptions)
Explore more optionsat our first-time homebuyer programs page.→ Maryland conventional loans. A conventional loan is any loan that isn’t a part of a government-backed loan program. Most conventional lenders go by the minimum requirements set by Fannie Mae and Freddie Mac, although, if you have unique needs, you can find niche lenders who set their own guidelines.
→ Maryland FHA loans. If you aren’t able to qualify for a conventional loan, you’ll be happy to find that FHA loan requirements aren’t as stringent. You can qualify with a credit score as low as 500 if you make a 10% down payment — and If you have at least a 580 credit score, you can make a down payment as low as 3.5%.
→ Maryland VA loans. VA loan requirements are quite flexible, since they’re designed to help military borrowers access homeownership. If you qualify for a VA loan and have full VA entitlement, you can purchase or refinance with no down payment.
→ Maryland streamline refinances encompass both FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs). The amount of paperwork and documentation you’ll need is minimal, meaning less hassle as you refinance. However, you can utilize these programs only if you’re going from an FHA loan into another FHA loan, or from a VA loan into a VA loan.
