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.After nearly a year of rising rates, there is some good news for homebuyers: The current mortgage rates forecast is for 30-year rates to remain under 7%, with the possibility of a drop below 6% sometime this year.
There are no guarantees, of course, but several signs point to lower mortgage rates on the horizon, including easing inflation and the likely end to this round of Federal Reserve rate hikes.
You can’t control or predict what the market will do, and it’s unwise to try. What you can do, however, is identify your part in the rates you’re being offered. Here are some factors determining mortgage rates that you do have control over, and how you can use them to get the best mortgage rate:
Federal law requires lenders to send you a loan estimate within three business days of receiving your application. Once you’ve reviewed an offer that looks attractive, you can request a mortgage rate lock. This freezes the interest rate you received in your offer, guaranteeing that it won’t increase before you make it to closing.
This program is one of several offered by the State of New York Mortgage Agency (SONYMA) to help borrowers obtain mortgages with low down payments and interest rates. The loans are 30-year fixed-rate mortgages that can be used to purchase 1-to-4 family homes, cooperatives and condominiums. They’re only available to first-time homebuyers, unless you’re an eligible military veteran or are buying in targeted areas in the state of New York.
Borrowers must:
Earn less than SONYMA’s income limits, which vary by location and household size
Make at least a 3% down payment
Contribute at least 1% or 3% of their own money, depending on the property type
Buy a home with a price that doesn’t exceed SONYMA’s purchase limits
Take a homebuyer education class
People who have never owned a home
People who haven’t owned real estate in the last three years
Areas designated as “targeted” can be found using this online lookup tool.
This program offers assistance with a down payment, closing costs or mortgage insurance costs. The funds come in the form of an interest-free loan that’s forgiven after 10 years. You can access up to 3% of your home’s purchase price (with a cap at $15,000) or $3,000, whichever is greater. You won’t have to make any monthly payments, but if you sell or refinance the home before the 10 years are up, you will have to repay a portion of the loan.
Down payment assistance (DPA) loans from SONYMA can be combined with any of their other loans, such as those offered through the Achieving the Dream program we covered above. However, adding on a DPA loan will cause your interest rate to go up by 0.375%.
Borrowers must:
Purchase their home with a SONYMA mortgage
Looking for a SONYMA-approved lender? Find one here.HomeFirst gives first-time homebuyers a leg up by offering them up to $100,000 toward closing costs or a down payment. It can be used to buy a 1-to-4 unit home, condo or cooperative in any borough in New York City. The program is administered by Neighborhood Housing Services of New York City (NHS), in partnership with the NYC Department of Housing Preservation and Development (HPD).
Borrowers must:
Not make more than 80% of their area’s median income, which means that a borrower can qualify with income ranging from $79,200 for a one-person household to $149,300 for an eight-person household.
Make at least a 3% down payment
Take a homebuyer education class
Live in the home for at least 10 years if their DPA loan is for $40,000 or less
Live in the home for at least 15 years if their DPA loan is for over $40,000
People who have never owned a home
People who haven’t owned real estate in the last three years
→ New York conventional loans. Conventional loans are a standard choice in the mortgage world for a reason — but to take full advantage of them, you’ll need at least a 620 credit score and a 3% down payment. Their minimum requirements are usually set by Fannie Mae and Freddie Mac, though some lenders opt to create their own guidelines.
→ New York FHA loans. FHA loan requirements provide an alternative option for borrowers whose credit score isn’t quite up to the standards required by conventional lenders. You can qualify with a credit score as low as 500, but you’ll need to make a 10% down payment in order to do so. And if your down payment fund isn’t quite that high yet, don’t worry — you can put down as little as 3.5% as long as your credit score is at least 580.
→ New York VA loans. VA loan requirements are the most flexible you’ll find, and they’re tailored to the needs of military borrowers. If you’re eligible, VA loans are certainly an option to consider, especially if you don’t want to make a large down payment. Borrowers with full VA entitlement never have to make a down payment.
→ New York streamline refinances are an option for borrowers who already have an FHA or VA loan and want to refinance into another of the same loan type. FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs) are called “streamline” refinances because they’re easier than other refinances, typically requiring less time and paperwork.
Ready to compare top mortgage lenders with LendingTree?
